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UMASS/AMHERST 




312066 0334 6109 4 

76th Congress, 3d Session 



-City uorajy, 
ingfield, Mass. 



P53I 

House Document No. 983 \ ri -^ r:k 



FOURTH ANNUAL REPORT 

OF 

THE PRESIDENT 

OF THE 

PHILIPPINES 

TO THE 

PRESIDENT AND THE CONGRESS 
OF THE UNITED STATES 

COVERING THE PERIOD 
JANUARY 1 TO JUNE 30, 1939 



76th Congress, 3d Session - . . . _ House Document No. 983 



OF 

THE PRESIDENT 

OF THE 



TO THE 

PRESIDENT AND THE CONGRESS 
OF THE UNITED STATES 

COVERING THE PERIOD 
JANUARY 1 TO JUNE 30, 1939 




October 28, 1940. — Referred to the Committee on Insular Affairs 
and ordered to be printed 



UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1940 



For sale by the Superintendent of Documents, Washington, D. C. ------- Price 10 



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TABLE OF CONTENTS 



Page 

Relations with the High Commissioner 1 

General conditions 1 

National economy 2 

Public finances 3 

Administration of justice 5 

Labor and social justice 6 

Immigration and emigration 8 

Public instruction 8 

Public works 11 

Air service 11 

National defense 12 

Philippine constabulary 14 

Civil service 14 

Commission of the census 14 

National language 15 

Agriculture and trade 15 

Forest conservation 16 

Overseas trade 17 

Mining 17 

Administration of public lands 18 

Lumber industry 18 

Government-owned corporations 19 

National relief 25 

The Buenavista Estate lease 26 

The Jewish refugee colonization plan 27 

Special mission to the United States 28 

Conclusion 29 

APPENDIXES 

Appendix I. Financial operation of the Commonwealth Government 

during the fiscal year January 1 to June 30, 1939 30 

Appendix II. The coconut oil excise tax fund 31 

Appendix HI. Expenditures by functional purposes 34 

Appendix IV. Statement of total assets, liabilities, and surplus, all funds. _ 35 

Appendix V. Public debt 36 

Appendix VI. Currency circulation 36 

Appendix VII. Government-owned corporations 37 

Appendix VIII. List of the more important measures passed at the first 

regular session of the Second National Assembly 37 

Appendix IX. List of the more important executive orders issued by the 

President of the Philippines 39 

Appendix X. Overseas trade during the first 6 months of 1939 40 

Appendix XI. Arrivals and departures of persons in the Philippines 41 

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MESSAGE FROM THE PRESIDENT 



To the Congress of the United States: 

As required by paragraph (3) of section 7 of the Act of Congress 
approved March 24, 1934, entitled "An Act to provide for the complete 
independence of the Philippine Islands, to provide for the adoption of 
a constitution and a form of government for the Philippine Islands, 
and for other purposes," I transmit herewith, for the information of 
the Congress, the Fourth Annual Report of the President of the 
Philippines to the President and the Congress of the United States 
covering the 6-month period ended June 30, 1939. 

The enclosed report covers a 6-month period instead of a full 
calendar year as heretofore. This change is occasioned by a provision 
in Commonwealth Act No. 373 under which the fiscal year as of July 
1 to June 30 is established. Formerly the Commonwealth's fiscal 
year corresponded with the calendar year. 

Franklin D. Roosevelt. 

The White House, 

October ^8, 1940. 



ANNUAL REPORT OF THE PRESIDENT OF THE COM- 
MONWEALTH OF THE PHILIPPINES FOR THE 6-MONTH 
PERIOD ENDED JUNE 30, 1939 

Malacanan Palace, Manila, May 24, 1940. 

The President and the Congress 

OF THE United States, Washington, D. C. 

Sirs: In compliance with the provisions of section 7 of the Act of 
Congress of March 24, 1934, Public, No. 127, known as the Tydings- 
McDuffie law, which are embodied in the Ordinance appended to the 
Constitution of the Philippines, section 1, paragraph 20, and also by 
virtue of the provision of Commonwealth Act No. 373, changing the 
official fiscal year from the period January 1 to December 31 of the 
calendar year to the period from July 1 of each calendar year to June 30 
of the calendar year immediately following, I have the honor to submit 
my report of the proceedings and operations of the government of the 
Commonwealth of the Philippines for the period covering from Janu- 
ary 1 to June 30, 1939. 

RELATIONS WITH THE OFFICE OF THE UNITED STATES 

HIGH COMMISSIONER 

The helpful and understanding attitude shown by High Commis- 
sioner Paul V. McNutt, from the time he first assumed the duties of 
his position some 2 years ago until his departure for the United States 
recently, has been instrumental in maintaining the cordial relations 
existing between the office of the tligh Commissioner and the Common- 
wealth government. 

The departure of High Commissioner McNutt for the United States 
on May 11, 1939, after an unselfish service of over 2 years in his post of 
trust and responsibility, was sincerely regretted by the Common- 
wealth government and by those who had the privilege of being 
associated with him. 

Upon the departure of High Commissioner McNutt, the Honorable 
J. Weldon Jones, financial adviser on the High Commissioner's staff, 
was designated as, and officially performed the duties of. Acting 
United States High Commissioner. 

GENERAL CONDITIONS 

The first 6 months of 1939 were a period of general progress along all 
lines of national endeavor. Unemployment has been steadily reduced 
with the opening of more public-works projects which consisted mostly 
of the construction of highways, bridges, and public school buildings. 
There was a general improvement in business conditions. 

Agrarian and industrial confficts, strikes, and lockouts, which were 
comparatively few, were speedily taken care of by the Department of 
Labor and the Court of Industrial Relations. 

1 



2 ANNUAL REPORT OF THE PRESIDENT OP THE PHILH'PINES 

Educational facilities for primary instruction have been extended 
to the remoter sections of the Philippines. Illiteracy among the 
laboring classes and inhabitants of backward communities is being 
gradually eliminated through the government's system of adult educa- 
tion. More school buildings are being constructed to accommodate 
the increasing school population of the country. The government is 
encouraging the development of native literature and arts, and, to 
realize this aim, has offered annual literary prizes for the best works in 
history, biography, novel, drama, short story, essay, and poetry in 
English, Spanish, and Tagalog. 

The state of public health, although there were some outbreaks of 
minor diseases, was satisfactory. Several new hospitals, puericulture 
centers, and free clinics were made available for the use of the public. 
A rigid quarantine inspection work in all ports of entry was kept up, 
accounting for the absence of any incidence of cholera, plague, or 
smallpox. 

NATIONAL ECONOMY 

The program for readjusting Philippine economy is being carried 
out faithfully. Encouraging results have already been obtained from 
the earlier economic projects put into effect during the past 2 years. 
Additional ventures along agricultural and industrial channels, either 
untried or else not completely executed in the past, were started to 
help strengthen the foundation of the country's economic structure. 

The work of the National Land Settlement Administration, a 
1P20,000,000 government corporation in charge of establishing agri- 
cultural settlements and developing a system of small agricultural 
landholdings in Mindanao and other sparsely populated regions of the 
Philippines, is proceeding successfully. By Presidential proclama- 
tion, 170,300 hectares (425,750 acres) of public land embracing the 
rich valleys and plains of Cotabato, Agusan, and Davao, have been 
reserved for settlement purposes. 

To the fertile Koronadal Valley in Cotabato, site of the initial settle- 
ment project, the first settlers were brought at government expense. 
Home sites were distributed among them and modern facilities estab- 
lished. This group of immigrants from congested districts will be 
followed by others until the estimated quota of 500,000 settlers and 
more for Mindanao in 10 years is fully covered. 

The exploration of the Surigao iron-ore reservation, including the 
survey of port facilities, was completed, revealing the existence of 
deposits of iron ore of different grades, amounting to over 1,000,000,000 
tons, with an iron content averaging at about 48 percent. The 
study of this area has disclosed an admixture of nickel with the iron 
ore in a proportion which may make the separation of the nickel from 
the iron commercially feasible, as well as the possibility of the 
existence of valuable chromite bodies. 

Several localities were explored by coal geologists of the National 
Development Co., but most of the deposits explored do not contain 
coal of such quality and quantity as to justify development work. 
However, in southern Surigao, near Linguig, the Mekoupe coal area 
has been found to have commercial possibilities. The deposit is 
estimated to contain several hundred thousand metric tons of coal, 
66,000 metric tons of which lie close to the surface and may be easily 
recovered by stripping. 



ANNUAL REPOKT OF THE PRESIDENT OF THE PHILIPPINES 6 

Field exploration work for oil accumulation was carried out on 
geological structures and formations in Leyte, and a preliminary 
reconnaissance of the sedimentary area northwest of Iloilo Province 
also conducted. So far, no definite results have been obtained; 
nevertheless, at least one structure favorable for oil accumulation 
may be expected to be defined soon in Leyte and probably another in 
Tarlac. 

The extended studies made by the technical staff of the National 
Development Co. have demonstrated the necessity of promoting 
chemical industries to complete the industrialization program of the 
Commonwealth. Further experiments were also successfully con- 
ducted in the commercial manufacture of asbestos and tile roofing, 
wood veneer, rayon and silk, paper for such purposes as newsprint, 
cardboard, wrapper, and office stationery, and lumber curing. 

The manufacture of cotton goods for local consumption has been 
started by the National Development Co. For lack of an adequate 
supply of chemicals and dyes, the work so far has been confined 
exclusively to the manufacture of yarn and grey sheetings which are 
being sold almost as fast as they are turned out. This industry, in 
turn, has encouraged the farmers to devote substantial farm areas 
to cotton planting. 

The National Power Corporation has completed plans for the con- 
struction of a h3^droelectric plant on the Caliraya Kiver, Provmce of 
Laguna, at an estimated cost of F8, 500, 000. It is noteworthy to 
mention that the ManUa Electric Co. has made an offer to the National 
Power Corporation to purchase all the power that may be produced 
by this project, which is calculated to furnish sufficient electric power 
for the needs of both home and factor}?- in Manila and the neighbor- 
ing Provinces of Laguna, Tayabas, Rizal, and Cavite. 

To improve the present banking and credit system in the country, 
Commonwealth Act No. 458 was passed authorizing the establish- 
ment of an Agricultural and Industrial Bank to grant capital loans to 
industry and long-term loans to farmers. The Philippine National 
Bank would then operate exclusively as a commercial bank, leaving 
the granting of long-term loans to the new bank. 

PUBLIC FINANCES 

In conformity with the policy enunciated in the last annual report, 
the budget of ordinary revenues and expenditures is entirely segre- 
gated from the budget of extraordinary receipts and expenditures 
under the coconut oil excise tax fund. 

ORDINARY BUDGET 

The net total of ordinary revenues of the National Government 
for the period January 1 to June 30, 1939, amounted to P63,735,626.62. 
This ordinary income consisted of the following items: 

Revenue from taxation P49, 293, 675. 76 

Incidental revenue 2, 272, 802. 71 

Earnings and other credits 9, 918, 954. 78 

Repayment of loans 199, 800. 00 

Proceeds from loans 364, 933. 37 

Transfers from other funds 1, 685, 460. 00 

Total 63, 735, 626. 62 

272764-40 2 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



The net total of ordinary expenditures was F73, 095,491. 93. The 
ordinary expenditures therefore exceeded ordinary income in the 
amount of F9, 359, 865. 31. Tliis excess was taken from the accumu- 
lated cash balances. 

EXTRAORDINARY BUDGET 

Coconut oil excise tax fund. — During the fiscal period from January 
1 to June 30, 1939, receipts from the coconut oil excise tax, including 
interest on their deposits in the United States Treasury, amounted to 
F25,757,352.16. In addition, F2,000,000 reverted to this fund due 
to an appropriation from it under Commonwealth Act No. 125 
(revolving fund for the construction of waterworks). Since the cash 
balance on hand on December 31, 1938, amounted to F71, 286,447. 24, 
the total available in the fund amounted to P99,043,799.40. 

During the 6 months under review, there was actually expended 
from the fund a total of P13,384,170.71, thus leaving an unexpended 
balance as of June 30, 1939, of F85,659,628.69. In line with the 
understanding of June 23, 1937, as to legitimate uses of the fund, and 
with interpretations of the Joint Preparatory Committee on Philip- 
pine Affairs as to "readjustments" that might properly be made, 
current expenditures from this fimd were as follows: 

General welfare service (P8,203,663.24): 

Public health P824, 271. 23 

Other protective service 425, 46L 89 

Public education 159, 352. 03 

Public charity 37, 499. 68 

Conservation of natural resources 475, 659. 86 

Development of commerce 1, 396, 925. 87 

Development of industrial arts and sciences 20, 769. 99 

Development of agriculture 2, 713, 722. 69 

Other economic development 2, 100, 000. 00 

Promotion of Philippine Islands tourist trade 50, 000. 00 

Investments (P3,496,007.47) : 

Subscription to the capital stock of the Manila R. R. Co., Act 

3116 as amended 2, 000, 000. 00 

Advance to the Rural Progress Administration, Common- 
wealth Act 378 as amended bj- Commonwealth Act 420 1, 496, 007. 47 

Appropriation transferred to special fund : Revolving? fund, Com- 
monwealth Act No. 403 I 1, 684, 500. 00 

Total functional expenditures 13, 384, 170. 71 

The total receipts from the coconut oil excise tax fund from 1937 up 
to June 30, 1939, amounted to P157,423, 316.60. Proposed expendi- 
tures authorized by appropriations amounted to F189,603,196.71. 
Of this sum only Fl 13, 121, 145. 16 has actually been released by the 
President. Finally the amount actually spent, after considering the 
above reversion of F2, 000, 000 appropriated under Commonwealth 
Act 125, was P71,763,687.91. 

The following table shows the situation by years: 



Year 


Receipts 


Appropriations 
(net) 


Released (net) 


Expenditures 
(net) 


1937 


Pin, 179, 383. 32 
20.486,581.12 
25, 757. 352. 16 


P31, 559. 522. 50 
137,556,141.41 
20, 487, 532. 80 


P28, 509, 522. 50 
70,056.115.96 
14, 55.5, 506. 70 


P26 509 5''2 50 


19b8 


31 869 994 70 


1939 


13 3S4 170 71 






Total 


157, 423, 316. 60 


189, 603, 196. 71 


113, 121, 145. 16 


71, 763, 687. 91 





ANNUAL REPOKT OF THE PRESIDENT OP THE PHILIPPINES 



The finances of the government, despite a shght excess of expendi- 
tures over income during the first 6 months of 1939, remained sound 
because of the existence of accumulated surphis funds in the treasury 
of the government. The receipts from the coconut oil excise tax have 
been carefully kept, and portions thereof judiciously spent for a well- 
balanced program of public works and systematized development of 
industries which are expected to enhance the economic development 
of the country. 

ADMINISTRATION OP JUSTICE 

An encouraging acceleration in the dispatch of cases has been noted 
in all the superior courts of the land. Such acceleration may be 
gleaned from the following table: 





Number of cases decided in- 




Supreme 
court 


Court of ap- 
peals 


Court of first 
instance 


1936 


395 
425 
661 
407 


697 
1,208 
1,329 
1,007 


19, 645 


1937 


21, 984 


1938 


21,051 


1939 (6 months) 


11,447 







The increase is due to the appointment of additional justices in the 
Court of Appeals and judges of courts of first instance and to the 
extraordinary efforts being displayed in all judicial officers to hasten 
the dispatch of cases. 

There has been marked improvement in social harmony during the 
last 22 years. Statistical data show that during the decade from 
1918 to 1927 there was an average of one litigation for every 561 in- 
habitants, or 178 court litigations for every 100,000 population; 
whereas the average during the decade from 1928 to 1937 was one 
litigation for every 624 inhabitants, or 180 court litigations for every 
100,000 population. The improvement in 1938 was even more 
remarkable because the average was one litigation for every 704 in- 
habitants, or 142 court litigations for every 100,000 population. 

Department of Justice. — The Department of Justice, aside from its 
primary function in relation to the administration of justice, has 
taken active part in the new concept of government as an instru- 
mentality of social service. The role of the Department in social 
amelioration lies in the prevention and punishment of usury, the 
regulation of trade in securities, the fostering of better industrial and 
agrarian relations, and in the solution or arbitration of industrial and 
agrarian conflicts. 

A special corps of attorneys and agents has been organized into a 
division to take charge of the enforcement of the tenancy law, designed 
especially to improve agrarian relations. The peculiar feature of the 
law (Commonwealth Act No. 461) which came into efi^ect on June 9, 
1939, is that for the first time in this country a social measure has 
been adopted to maintain security in tenancy in that no tenant may 
now be dispossessed of the land he tills except for just cause and only 
when approved by a representative of the Department of Justice. 

Bureau of Justice. — During the period under review, the Bureau of 
Justice handled 25 criminal and 11 civil cases appealed to the Supreme 



6 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

Court and 336 criminal and 59 civil cases appealed to the Court of 
Appeals, in addition to 800 original cases filed in the courts of first 
instance in which the public or the government is primarily interested. 
There were also 262 probate cases handled by the Bureau relating to 
the estates of deceased Americans. 

Office of the Corporate Counsel. — This Office, which handles legal 
matters for government-owned corporations, represented the Philip- 
pine National Bank as plaintiff in 369 cases involving F3 18,290.69, 
and as defendant in 7 cases involving F163,005.50. It also handled 
for the bank 396 extrajudicial foreclosures, involving F362,977.19. 
In addition it took charge of 142 cases for the Manila Railroad Co., 
and 160 cases for the other government instrumentalities. 

Antiusury Board.- — A rigorous campaign was waged by the anti- 
usury board in the central provinces of Luzon, in cooperation 
with other government entities, in an effort to uproot usurious practices 
especially in agrarian relationships. Administrative fines were im- 
posed upon those who were found to have violated the antiusury law 
while considerable relief to victims of usury was also effected in extra- 
judicial settlements in the form of reduction of excessive rates of 
interest, or reimbursement made by creditors to their debtors of sums 
of money received as interests above the rates allowed by law. 

LABOR AND SOCIAL JUSTICE 

As in the past year, inspections of commercial and industrial 
establishments have been regularly made by the Department of 
Labor. These inspections were directed toward the strict enforce- 
ment of the 8-hour labor law and also of the other labor laws which 
have for their object the prevention of accidents in factories and 
mines, and the promotion of the health and welfare of workers. 
During the period under review, factory inspections covered 3,046 
establishments employing 148,983 workers. 

An advisory safety council has been instrumental in formulating 
safety orders, rules and regulations, and in establishing safety devices 
and standards in mines, metallurgical operations, and other industrial 
establishments. 

Tenement houses.- — A new government venture toward the improve- 
ment of living conditions among laborers with meager incomes is the 
construction of tenement houses. With a revolving fund of F250,000, 
6 units with 194 apartments were constructed last year at Barrio 
Vitas, Tondo, city of Manila. The apartments were all provided 
with modern facilities, and a dramage system was installed on the 
tenement site to insure health and sanitation. This tenement-house 
project proved so practical that 2 more units, comprising 68 apart- 
ments, were constructed this jesiT. 

Settlement of claims. — The Department of Labor settled amicably 
3,002 wage claims filed by 7,300 claimants, and recovered the amount 
of F109, 168.88 for 2,221 claims. The Department's provincial agen- 
cies rendered gratuitous service to the unpaid wage earners in 1,864 
of these claims by collecting the sum of P96,116.69. Aside from the 
above figures, 257 cases were also brought to, and decided by, the 
courts, which e.warded to the claimants the amount of F16, 106.96, 
making a total amount of F125,275.84 recovered in this class of claims. 



ANNUAL REPORT OF THE PRES'IDENT OF THE PHILIPPINES 7 

The Department of Labor took cognizance of 5,890 accident cases 
during the period under review. It also secured amicably from 
employers the sum of F123,585.68 as compensation for injured 
laborers, aside from the amount of F48,418.67 for medical, hospital, 
and funeral expenses. One hundred thirteen compensation cases 
were brought to, and decided by, the courts, which awarded the 
amount of F28,889.90 to the injured laborers or their dependents, 
making a total amount of F200,894.25 paid by employers in com- 
pensation cases. 

In the provinces the public defenders have been acting as legal 
counsel in civil cases brought to court for the recovery of wages or 
salaries unpaid, and claims for compensation due the laborers and 
employees . It is also worth mentioning that they rendered legal ad- 
vice to the poorer classes of citizens. The free services of public 
defenders have also been made available to the people of Manila and 
the provinces who are too poor to hire lawyers to defend them in 
criminal cases. During the period under review, these government 
law^/^ers appeared as counsel in 192 criminal cases involving 317 
accused indigents. 

Strikes and tenancy disputes. — The 6 months under review have 
shown marked increase in the number of industrial disputes which 
were brought to the attention of the Department of Labor. There 
were 97 disputes durmg the 6 months imder review — 52 in Manila 
and 45 in the provmces mvolving 13,529 laborers — in comparison 
with 125 similar cases for the whole year 1938. Of these disputes, 
60 were settled amicably with advantage to workers and 5 in favor 
of employers, while 32 were referred to the Court of Industrial Rela- 
tions. This militant attitude of workers is traceable to labor's desire 
to improve its conditions and to the enactment of pro-labor laws; 
mostly, however, these industrial conflicts were caused by demands 
for increases in wages and reduction of workmg hours. 

The agricultural regions of the country experienced agrarian con- 
flicts, many of which assumed grave aspects. These agrarian dif- 
ferences, as in the past years, occurred mostly after the rice-harvest 
season, the ciiief cause being the inability of landown.ers and tenants 
to come to proper understanding regarduag crop shares. Largely to 
remedy these recurring agrarian disputes the National Assembly 
passed Commonwealth Acts Nos. 413 and 461. 

During the period under consideration 680 conflicts involving 1,681 
tenants were registered in 35 provinces, but mostly in Nueva Ecija, 
Tarlac, Pangasinan, and Pampanga. Through the friendly media- 
tion of provincial agencies of the Department of Labor these disputes 
were all settled with 578 cases being decided in favor of fa,rm com- 
plainants and the amount of P60,804.77 recovered. 

Public employment agencies. — Attention has been carefully directed 
toward the unemployment situation in Manila and the provinces. 
Applications from 4,097 job seekers were received hj the Department 
of Labor, wliile placements numbered 1,842, of which 1,417 were in 
Manila. In these placements the wages received by common laborers 
ranged from F0.60 to T1.25 daily; sldlied laborers, from Tl to F4 
a day; domestic servants, from TQ to FIO a month with room and 
board; while clerical help received a minimum of F30 a month. 



8 ANNUAL. KEPORT OF THE PRES'IDENT OF THE PHILIPPINES 

Interisland migration. — From January to June 1939 the Depart- 
ment of Labor transported 476 families, composed of 3,956 persons, 
to Mindanao, for the purpose of giving them farm settlements in the 
municipal districts of Buluan, Kidapawan, and M'lang of Cotabato 
Province. With the approval on June 3, 1939, of Commonwealth 
Act No. 441, which creates the National Land Settlement Adminis- 
tration, the Department has ceased to attend to the recruitment and 
transportation of homeseekers to Mindanao. 

IMMIGRATION AND EMIGRATION 

A stricter policy of restriction has been followed with a view^ to 
preventing the admission of aliens who are not entitled to enter and 
stay in the Philippines. Tliis strict policy has contributed largely 
to the decrease of alien immigration into the Philippines, with new 
landing certificates of residence being issued to only 475 Chinese 
immigrants, as compared with 3,525 in 1938 and 2,024 in 1937. 

Measures have also been initiated by the Commonwealth Govern- 
ment for the purpose of reorganizing the immigration office and 
amending the present immigration laws. On December 12, 1938, 
two immigration experts arrived from the United States to advise 
the Government on immigration matters. They have since made 
recommendations and suggestions toward the reorganization of the 
immigration division of the Department of Labor and the enactment 
of new immigration laws that will be practical and suitable in regu- 
lating the admission and exclusion of aliens. 

Excluding enlisted men and persons attached to the military and 
naval forces of the United States, a total of 10,482 persons arrived 
in, and 12,076 persons departed from, the Philippines. Among the 
arrivals were 1,756 immigrants, consisting of 393 Chinese, 779 Japa- 
nese, 182 Jews, and 397 belonging to other nationalities; while 
non-immigrants num.bered 4,366, consisting of 2,831 Chinese, 1,540 
Japanese, and 214 subjects of other countries; departing non-emi- 
grants totaled 3,623, of whom 1,962 were Chinese, 408 Japanese, and 
1,253 of other nationalities. 

During the 6-month period under review 175 aliens were deported 
from the Philippines, namely, 143 Chinese, 17 East Indians, 2 Jap- 
anese, 9 Russians, 1 Korean, 2 Czechoslovakians, and 1 Hebrew 
(German). 

PUBLIC INSTRUCTION 

Education.— ThQ annual enrollment at the end of the 1938-39 
school year was 1,746,452, the largest in the history of the PhiHp- 
pines. In March 1939 the public school system included 10,949 
schools and 38,305 teachers, supervisors, and administrators. All 
classes that were in existence at the end of the 1938-39 school year 
w^ere opened in June 1939, the beginning of the 1939-40 school year, 
with increased enrollment especially in the high schools. 

Beginning with the school year 1939-40, Commonwealth Act No. 
381 took effect and aU public prim^ary schools are now supported by 
the National Government, w-hile intermediate classes are maintained 
by the local governments. High schools continue to be supported by 
their respective provinces, while vocational schools are supported 
jointly by the national and provincial governments. 



ANNUAL, REPORT OF THE PRESIDENT OF THE PHILIPPINES 9 

Four new national vocational schools were opened durino; the 
period under review. The provincial agricultural schools at Malay- 
balay, Bukidnon, and Baybay, Leyte, were converted into regional 
agricultural schools of the Central Luzon Agricultural School type, 
while the provincial trade schools in Cebu and Iloilo were converted 
into regional trade schools of the Philippine School of Arts and Trades 
type. A normal school on the college level was also opened at Laoag, 
Ilocos Norte. 

Four government normal schools conducted courses in teacher 
training during the long vacation in April and May. During the 
same period 269 male teachers received advanced training in the 
Keserve Officers' Service School of the Philippine Army, in order to 
increase their efficiency in teaching preparatory military training to 
all male pupils 10 j^ears of age and above. 

Under the supervision of the Office of Private Education there were 
440 private schools, colleges, and universities, which offered 38 
kindergarten courses, 280 primary, 209 intermediate, 260 secondary, 
and 61 collegiate courses. The enrollment in these educational 
institutions — including that of 97 vocational schools — totaled 137,187. 
New private schools were thoroughly examined and no permit was 
issued unless the Office was satisfied that the school had a fair chance 
to continue open, with approved standards. During the period 
covered by this report the Office of Private Education granted cer- 
tificates of government recognition for 190 courses and issued 131 
permits for various other courses, ranging from kindergarten to 
collegiate level, and 18 permits for the operation of special and voca- 
tional subjects. 

The Office of Adult Education has intensified its campaign for the 
elimination of illiteracy and for instruction in the fundamentals of 
citizenship, vocational guidance, women's education, recreation, and 
general cultural information. These educational activities were 
carried out with the help of 42,630 volunteer workers who gave instruc- 
tion to 71,590 adult students throughout the country. Practical 
demonstrations on backyard gardening, farming, poultry and hog 
raising, food preservation, and sanitation were attended by 162,121 
persons. 

Physical education is being given greater emphasis through the 
holding of athletic meets and tournaments. Athletes from other 
countries were invited to participate in local athletic events to en- 
courage Filipino players and athletes. 

Health and sanitation. — The state of public health in the Philippines 
was, on the whole, good during the period under review. Gastro- 
intestinal diseases were registered, however, in the city of Manila and 
in some provinces, particularly in Nueva Vizcaya and Cagayan. 
Dysentery appeared sporadically, while measles, influenza, and 
varicella occurred in mild form throughout the Philippines. Bron- 
chitis and broncho-pneumonia constituted a serious problem, there 
having been reported 25,719 cases and 17,406 deaths. 

Leprosy-control work continued to receive the attention of the 
offices of the government in charge of health activities. Although 756 
persons were released as negatives, there were at the end of June 
8,817 cases under segregation, 5,585 of which were in the Culion 
Leper Colony. 



10 ANNUAL. REPORT OF THE PRESIDENT OF THE PHILH'PINES 

Under Commonwealth Act No. 161, P500,000 was appropriated by 
the National Assembly for the establishment of three leprosaria. At 
the beginning of 1939 a road leading to the site of the Central Luzon 
Leprosarium, acquired in 1937, was built. The following buildings 
have so far been completed: (1) Administration, (2) mess hall for 
employees, (3) garage and workshop, (4) 1 storehouse, (5) 2 wings 
of the infirmary, (6) kitchen for the infirmary, (7) physicians' offices, 
operatmg room, and pharmacy, (8) laboratory, (9) chemical plant, 
(10) morgue, (11) 10 barracks, and (12) 4 apartment houses. 

It was first decided to construct the Ilocos Leprosarium in Lagangi- 
lang, Abra. In view, however, of several complaints against its 
establishment there, a new site is being located at Bucay, in the same 
province. 

The third leprosarium is proposed to be located in San Roque, Bato, 
Cagayan. Its construction cannot as 3^et be started due to conflict 
over the ownership of the site. 

A steady campaign was waged for the improvement of sanitation 
in public eating places, public markets, slaughterhouses, and dormi- 
tories. Immunization work against contagious diseases was steadily 
continued in the provinces and cities. A total of 970 commercial 
and industrial establishments in Manila and nearby towns were 
inspected, while the owners of 119 similar establishments throughout 
the country were ordered to provide free medical aid to their em- 
ployees and laborers. 

Hospitals and dispensaries. — There are 75 hospitals, with a total 
bed capacity of 5,600, operating under the Bureau of Health. The 
government also operated 1,535 free public dispensaries which are 
unattached to hospitals. 

Maternal and child hygiene cases among the poor people were taken 
care of by 301 operating puericulture centers, of which Manila has 17, 
and by city and provincial maternity houses. 

The school health service in the provinces was supervised by the 
district health officers and rendered by presidents of sanitary divisions, 
with the cooperation of the nvu'ses of the Bureau of Education and the 
nurses and dentists of the Philippine Red Cross. 

Quarantine service. — The utmost vigilance was exercised by the 
Bureau of Quarantine Service, which is ably administered by Senior 
Surgeon Howard F. Smith, United States Public Health Service, in 
preventing the introduction through incoming vessels and aircraft of 
smallpox, cholera, and plague into the Philippines. 

Medical examinations were conducted on all arriving aliens and on 
all persons presented by the American Consul as applicants for 
American immigration visas. Vaccination was required of all steerage 
passengers immediately prior to entering the Philippines. 

Two quarantine stations, one at Mariveles and another at Cebu, 
were maintained for the treatment of vessels, their passengers and 
crews, whenever quarantinable diseases were found on such vessels 
upon their arrival in the Philippines. 

It is pleasant to report that the first 6 months of 1939 is another 
period during which the Philippines was the only country in the 
Orient where epidemics of cholera, plague, and smallpox did not occur, 
despite the increase in the number of vessels and aircraft in communi- 
cation with nearby oriental ports infected with these diseases. 



ANNUAL REPOIRT OF THE PRES'IDENT OF THE PHILIPPINES 1 1 

PUBLIC WORKS 

A total amount of F4 1,270,723.28 was made available for road- 
and-bridge construction during the first lialf of 1939. This permitted 
the Bureau of Public Works to continue its unusual activity in the 
construction of interprovincial highways, and the complete or partial 
opening to traffic of primary or trunk roads, thereby not only acceler- 
ating the commercial and agricultural development of the remote 
regions, but also improving the social and economic welfare of the 
people living therein. 

During the period under review there were constructed 208.3 
kilometers of first-class roads, 878.9 kilometers of second-class roads, 
and 854.4 kilometers of third-class roads, or a total of 1,941.6 kilo- 
meters of all classes of roads. Including such recent constructions, the 
total length of Philippine highways, as of June 30, 1939, is 21,116.1 
kilometers, of which 10,310.4 kilometers are national roads and 
10,805.7 kilometers provincial. 

Seventeen permanent bridges, with an aggregate span of 1,410.80 
meters, were completed at a cost of Fl, 289, 874.11. To date there are 
5,516 national and 2,605 provincial bridges and culverts, or a total of 
8,121. Likewise the construction of 386 public school buildings, 
3 markets, and 127 miscellaneous buildings was completed. Im- 
provement of the facilities of 27 national ports and 23 municipal ports 
was in progress during this period, for which a total of Fl, 500, 000 
was released. Construction of the North Port of Manila continued 
to be the most important port works activity. Other public-works 
projects included the drilling of 65 successful public artesian wells, 
which bring up their total to 2,763, and the completion of 13 water- 
works projects, at a cost of F789,548.64, which now serve potable 
water supply to a total population of 61,400. There are 70 other 
waterworks projects under construction, at an estimated cost of 
?3, 391, 500. 00. The present municipal and provincial water-supply 
systems number 368, aside from 49 extensions and 14 improvements to 
existing systems in the Philippines, excluding tbe Manila Metropolitan 
Water District. 

The Bureau of Public Works continued the construction and 
improvement of river-control and sea-protection projects throughout 
the Philippines. Emergency repairs costing P90,000 were under- 
taken from January to June for the river-control projects in Pam- 
panga, Pangasinan, Tarlac, Bataan, Bulacan, Tayabas, Cavite, 
Sorsogon, and Nueva Ecija; while imxprovement facilities were also 
made in the river-control projects of five other provinces. 

AIR SERVICE 

Forty-eight of the eighty-one airports and landing fields estab- 
lished throughout the Philippines are operated and maintained by 
the Bureau of Aeronautics. At present they are classified into 45 
national airports, 5 military airports operated by the Untied States 
Army, 5 by the Philippine Army, 5 national emergency landing fields, 
2 natural emergency landing fields, 7 private airports, 7 auxiliary 
landing fields, and 5 unclassified fields. Other landing fields are 
under construction in the municipalities of Borongan and Calbayog, 
Province of Samar, and in the municipality of Lucena, Province of 
Tayabas. 



12 ANNLTAL. REPORT OF THE PRES'IDEXT OF THE PHILIPPINES 

The number of passengers carried by commercial planes on local 
air lines during the first 6 months of 1939 was 12,119, or an increase 
of 1,738 passengers over that for the corresponding period in 1938. 
These commercial planes flew a total of 765,787 passenger-miles, and 
carried 1,602,496.80 pounds of air express and 7,112.60 pounds of 
air mail. 

During the same period the Clippers of the Pan American Airways 
carried 585 passengers, 4,370 pounds of air mail, and 7,502 pounds of 
air express. 

It is pleasant to note that the increase in the number of aviation 
passengers and in the volume of air services is an encouraging index 
to the nation's interest in modern aviation and the people's gradual 
but steady confidence in the existing commercial air transportation 
facilities in the Philippines. 

The Bureau of Aeronautics continued research and experimenta- 
tion work in aircraft construction, and has turned out a propeller 
equipment of original design to facilitate its engineering research 
work. The preparation of airways maps and charts of landing fields, 
which started in the preceding year, was continued; it was estimated, 
however, that 2 more years would be needed to complete this par- 
ticular work. 

Registered airplanes were regularly inspected by the aeronautical 
inspectors of the Bureau of Aeronautics to ascertain the air woi'thi- 
ness of the airplane, engines, propellers, and component parts of each 
aircraft. 

The Bureau has under its operation two aeronautical radio stations : 
Station KZAB, which is located at Nielson Airport, San Pedro 
Makati, Rizal; and Station KZOD, in Davao. The network of 
weather and radio communications system of the Bureau will be 
completed when the equipment for 12 additional radio stations is 
installed on or before November 30, 1939. These additional radio 
stations will be located in Aparri, Vigan, Baguio, Alabat Island, 
Calapan, Cebu, Tabung Point, Tacloban, Surigao, Del Monte, 
Dipolog, and Zamboanga. 

NATIONAL DEFENSE 

During the period January 1 to June 30, 1939, there were initiated 
two phases of military preparation which were purposely omitted 
from the schedules of the last 2 years. The first and more important 
was a training mobilization in May, involving approximately 25,000 
Reservists. These men were of the trainee class of 1937. The 
mobilization was carried out, by company, at the local stations 
where they were assigned, and had as its principal purposes perfecting 
of basic organization and refresher training in company exercises. 

Another innovation in the military program involved the assign- 
ment to cadres, for 2 months' intensive training, of collegiate mem- 
bers of the Reserve Officers' Training Corps. This scheme had sev- 
eral objects in view, the most important of which was to give actual 
field and garrison training to student officers. Next to this was the 
desire to acquaint, tlu'ough such training, the future officers of the 
Philippine Army with the life and psychology of the men who will, 
in the future, comprise the enlisted personnel of the units to which 
these young officers will be assigned. It was also hoped that, through 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 13 

this system, the spirit of democracy and fairness, which are injected 
as essential attributes in our scheme of the national-defense program, 
would be emphasized to all classes and in every district. 

Except for the activities just mentioned, the period was devoted 
principally to the perfection and development of the training, ad- 
ministrative, and supply programs already initiated. Necessary 
constructions to provide shelter for personnel and safe warehousing 
for the equipment of Reserve units were continued in every military 
district. 

The following facts serve to define, in greater clarity than is pos- 
sible in any generalization, the progress that the Philippine defense 
program has attained as of June 30, 1939: 

Approximately 87,000 men have passed through the cadres and 
have been assigned to Reserve units. These men have been well 
apportioned among all the arms and services, except that the Coast 
Artiller}^ contingent is still below its proportionate strength. 

There are 3,900 individuals in the Reserve Officers' Corps, most of 
whom have had, in addition to basic theoretical instruction, active 
tours of duty varying in length from 3 months to more than 2 years. 

The Air Corps has 22 training, combat and transport planes, and 
39 pilots have graduated from the flying school, 5 of them having 
completed fljang courses in various Army flying schools in the United 
States. Half of the first tactical air unit has been organized and is 
now training as sucl;i. 

In the Offshore Patrol, two fully-equipped ships are operating, 
while the main base is functioning efficiently. An Offshore Patrol 
School was opened early in January of this year with an initial en- 
rollment of 10 regular officers and 31 enlisted men who will undergo 
different terms of training. 

Approximately'- 35,000 men are graduating from the cadres annually, 
5,000 of whom undergo training for eleven months and the rest for 
five and one-half. 

The system of command and staff throughout the Army has at- 
tained a reasonable state of operating efficiency. Late in June the 
Central General Staff was reorganized, and a General Staff Corps, to 
which officers were assigned, created. 

The construction and procurement programs have been going on 
progressively with the training program. In every district a depot 
for supplies, and in every mobilization center a warehouse, necessary 
links in the supply system of the Army, have been constructed. A 
total of 187 buildings and 33 other miscellaneous projects have either 
been completed or are still under construction. The development of 
Camp Parang, Cotabato, for the Second Infantry Regiment was near- 
ing completion on June 30. Additional constructions were also made 
in Zablan Field, Camp Dau, Pampanga, and Camp Lahug, Cebu, to 
accommodate the needs of the Philippine Army Air Corps. 

The Army has continued conducting service schools for different 
branches of the military service. Sixteen officers were also selected 
and detailed to the various service schools of the United States Army. 

The integration of all elements of the Army into a unified, coordi- 
nated defense force is proceeding according to schedule. 

As was done in all prior reports on this subject, grateful acknowl- 
edgment to the American Army for its invaluable cooperation and 
assistance in the attainment of planned objectives is again made. The 



14 iAlSTNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

War Department has been more than generous in its attitude toward 
this government, while the commanders of the United States Army 
and Navy forces and their subordinates have consistently striven to 
help, m every practicable way, in assuring the successful operations 
of the Philippine defense plan. 

PHILIPPINE CONSTABULARY 

The Philippme Constabulary, which was made independent of the 
Army and placed imder the supervision of the Department of the 
Interior on February 1, 1939, devoted itself to the task of maintaining 
peace and order throughout the country. Systematic patrol work 
was undertaken by officers and enlisted men, while constabulary 
provincial inspectors took charge of supervising the municipal police 
forces. 

CIVIL SERVICE 

The Bureau of Civil Service has made commendable progress in the 
work incident to the extension of the merit system to all branches and 
subdivisions of the government as provided by law. During the 
period under review, 57 examinations were given by the bureau to 
which 32,436 competitors, who have expressed preference for the 
civil service, were admitted. Several competitive pensionado ex- 
aminations were also held for the purpose of selecting persons for 
scholarships abroad; and it is gratifying to note that many of the 
persons thus selected have already been sent to the United States to 
pursue specialized studies in various professional courses which are 
technical or scientific in nature. The Bureau of Civil Service also 
conducted 40 examinations for the 16 boards of examiners which are 
in charge of admitting and registering professionals to practice in the 
Philippines with the exception of members of the law profession. 

During the first 6 months of 1939 there were 2,743 probational ap- 
pointments to the classified civil service, and 5,220 appointments by 
promotion, reduction, and transfer. As of June 30, 1939, the records 
of the Bureau of Civil Service showed 116 Americans and 55,105 
Filipinos regularly and permanently employed in the civil service. 

Of the 947 officers and employees who were separated from the 
service during the first half of this year, 10 were Americans who 
voluntarily resigned and were retired under Act No. 4151. 

COMMISSION OF THE CENSUS 

The census of population of the Philippines was taken on Census 
Day, January 1, 1939, and continued every day until the enumeration 
was completed 20 days later. With the exception of a few early 
refusals of aliens, mostly Chinese, to answer the census questions 
asked because they misunderstood the purpose, it may be correctly 
said that the people throughout the country cooperated splendidly 
with the Commission in the performance of its task. 

The Commission also gathered general statistics on Philippine 
economy, including agriculture, commerce, manufactures, fisheries, 
forestry, mines, quarries, electric light and power companies, trans- 
portation, professions, and real property. The taking of the census 
on population and agriculture was done by enumerators who made a 
house-to-house canvass. The census of forestry was undertaken 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES' 15 

through the cooperation of the officers of the Bureau of Forestry who 
distributed schedules among forest hcensees; while statistical infor- 
mation on other branches of economy was obtained by mailing 
census forms to the firms and professionals concerned. The provincial 
and city treasurers took charge of the work pertaining to the census of 
real property within their respective jurisdictions. 

Of the amount of P2, 930, 988. 76 mentioned inmj^ 1938 annual report 
as available for the national census work, the amount expended until 
June 30, 1939, was P2,475.938.11, thereby leaving a balance of 
F455,050.65. 

As part of the census of the Philippines, statistical tables on clima- 
tology have been prepared under the immediate supervision of the 
Director of the Weather Bureau. These tables show the rainfall, 
temperature, relative humidity, cloudiness, and direction of the wind 
at selected places all over the Philippines. The wind roses of 48 towns 
have been drawn, as also maps showing the distribution of precipita- 
tion by months, the types of climate, and the distribution of typhoons. 

The geographical survey of the Philippines has advanced consider- 
ably under the immediate supei'vision of Commander F. B. T. Siems, 
Director of the Bureau of Coast and Geodetic Survey. A list of over 
7,000 islands within Philippine jurisdiction, giving their names, loca- 
tion by latitude and longitude, and area, is in course of preparation. 

NATIONAL LANGUAGE 

Diu"ing the 6 months covered by this report the Institute of National 
Language continued the work of making a dictionary and a grammar 
of the national language based on Tagalog, which was begun in 1938. 
The work on the Tagalog vocabulary in English and in the more 
important Philippine languages, namely, Sebu, Hiligaynon, Iloko, 
Samar-Leyte, Bikol, Pangasinan, Pampangan, Ibanag, Ivatan, and 
Magindanaw, proceeded steadily. These vocabularies are intended 
to be used by citizens who do not speak Tagalog, in place of the 
dictionary which will still take some time to complete. 

A comparative study of the lexicography of the Philippine languages 
was also prepared and revised for publication. Investigations were 
also conducted on the feasibility of fixing the spelling of Philippine 
geographical names of native origin in conformity with the orthog- 
raphy fixed by the Institute of National Language. 

AGRICULTURE AND TRADE 

The salient feature in the development of local agriculture is the 
stress placed upon the cultivation of crops heretofore imported by 
the Philippines but which may be grown locally, and also upon prod- 
ucts that may be exported on a noncompetitive basis. Because of this 
new emphasis in the development of Philippine agriculture, considered 
as a remedy to the depressed situation of the country's principal 
export products, larger areas have been utilized for the cultivation of 
rice, corn, onions, fruits, and other farm products. 

The livestock industry has received encouragement from the govern- 
ment. The sum of PI 00, 000 has been appropriated under Common- 
wealth Act No. 340 for the establishment and operation of an animal 
utilization service, which will furnish assistance to the livestock men 



16 A^s'XUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

in marketing their cattle, and at the same time provide means for 
the profitable utilization of animal byproducts. 

The prohibition of the importation of beef cattle on the hoof 
remains in force, and only animals for breeding, pet, sport, or work 
purposes have been imported. There have been established addi- 
tional stock farms and breeding stations in different provinces, and the 
progress of the livestock industry has been further accelerated by the 
absence of any serious outbreak of animal diseases. 

The promotion of home industries to provide livelihood to those 
who are not employed on the farm and in the factory, has been en- 
couraged by the agencies of the Department of Agriculture and Com- 
merce. A set-back to this, however, is the slow patronage by the 
buying public of locally-made commodities. Foreign goods still 
dominate the market and much has yet to be done to place the locally- 
made products on a competitive basis with the former. 

The general trade in the provinces was unusually quiet during the 
period under review because of the prevailing low prices of export 
products — copra, sugar, tobacco, abaca — upon which the majority of 
the people depend for income or livelihood. The retail trade, like- 
wise, was only fair, and total sales made by merchants and peddlers 
for the first 5 months of 1939 amounted to F293,483,000 as compared 
with P307,456,000 for the like period in 1938, or a decrease of 4 
percent. Retail trading was quite sluggish in the provinces where the 
principal source of income of the people comes from the sale of abaca, 
sugar, copra ; and generally fair in the provinces where rice is the main 
crop or where household industries are found. 

There was marked industrial progress in the early part of 1939. 
Indicative of such increased industrial activity is the rise in electric- 
power production wliich totaled 76,402,426 kilowatt-hours for the first 
half of the year as against 68,208,544 kilowatt-hours for the same period 
of the previous year, or an increase of 12 percent. The building 
boom continued, and real-estate sales in Manila and the newly created 
Quezon City increased considerably. Corporate investments showed 
satisfactory progress with a total of F4, 937, 283 for the January-June 
period as against F2, 698, 578 for the corresponding period of 1938, or 
an increase of 82 percent. 

FOREST CONSERVATION 

During the 6 months under review 156,589 hectares of public lands 
were examined by the Bureau of Forestry for reforestation purposes. 
There are now 32 reforestation projects in progress, located as fol- 
lows: 23 in the watershed of the Agno, Pampanga, Cagayan, and 
Abra Rivers; 4 in the established forest reserves; and 5 in national 
parks. A total of 5,500 laborers were employed under the rotation 
system in these projects, which contain an area of 6,988 hectares in 
plantations (17,260 acres) where 74,126,000 young forest trees are 
now growing. 

The Pinm.aloy Forest Reserve in Bukidnon, which contains 3,836 
hectares (9.479 acres) was established for forest protection and timber 
production. There are at present 80 forest reserves covering 1,076,234 
hectares (2.657.011 acres), which are located in 2 cities and 34 
provinces. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 17 

Seventeen blocks of forest land, having an aggregate area of 451 
hectares (1,114 acres), were also established as timberlands. There 
were established also 26 national parks, covering a total area of 
167,706 hectares (414,418 acres). For the building of roads and trails 
leading to 6 national parks an appropriation of F344,000 has been 
authorized under Commonwealth Act No. 330. 

OVERSEAS TRADE 

The total overseas trade, excluding gold and silver shipments, for 
the first 6 months of 1939, amounted to P235,976,839 as against 
P286,419,763 for the same period in 1938, or a decrease of P50,442,924 
or 17.61 percent. Of the above amount, P99,946,387 constitutes the 
imports, and F136, 030,452 the exports, as against P153, 794,371 and 
F132,625,392, respectively, for the same period in 1938, showing a 
decrease of F53,847,984 or 35.01 percent in imports and an increase of 
F3,405,060 or 2.56 percent in exports. The balance of trade for the 
period under review was again favorable to this country, the amount 
being P36,084,065. 

Exactly 78.36 percent of Pliilippine exports were marketed in the 
United States, 5.31 percent in Japan, 3.32 percent in the Netherlands, 
2.1 percent in Great Britain, 1.33 percent in France, and the rest in 
other countries. As usual the greatest bulk of our imports came from 
the United States, 64.81 percent having been supplied by that coun- 
try, 7.8 percent came from Japan, 3.95 percent from German}^, 2.88 
percent from Great Britain, 2.61 percent from the Dutch East Indies, 
2.58 percent from China, 2.48 percent from the Netherlands, and the 
rest from other countries. 

Imports from the United States, representing 64.81 percent of the 
total, amounted to F64,772,816 as compared with P107, 690,378 for 
the same period in 1938, or a decrease of F42,917,562. This decrease 
was due to the fall in all our 10 principal imports. 

During the period under review, the percentage of imports from the 
United States, as compared with imports from other countries, was as 
follows: (1) Iron and steel construction materials and machineries, 
77.41 percent; (2) cotton goods, 64.69 percent; (3) mineral oils, 71.42 
percent; (4) meat and dairy products, 25 percent; (5) paper and manu- 
factures thereof, about 69 percent; (6) automobiles, spare parts, and 
tires, about 98 percent; (7) tobacco products, 98 percent; (8) chemi- 
cals, drugs, dyes, and medicines, about 63 percent; and (9) silk, rayon, 
and manufactures thereof, approximately 70 percent. In the case of 
meat and dairy products, the United States occupied second place, 
while the Netherlands, which supplied 43 percent of our im.ports in 
this classification, ranked first. 

Exports to the United States, representing 78.36 percent of the 
total, amounted to P106,586,604 as against P107,110,991 for the 
same period in 1938, or a decrease of F524,387. This decline was due 
to a slight decrease in our exports of sugar, coconut oil, and copra 
meal and cake. 

MINING 

During the period under review, gold production by 47 mining com- 
panies amounted to 489,845.61 fine ounces, valued at F34, 224, 872.72, 
while silver as a byproduct amounted to 655,665.76 fine ounces, valued 
at ^815,218.79. 



18 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

Increases have been made also in base-metal production. Iron 
production by four mining companies totaled 549,703.29 tons, valued 
at F2,418, 160.58. Fifteen mining companies turned out 8,266,708.49 
pounds of copper, valued at Fl, 295, 635. 87; four chromite companies 
produced 20,193.39 tons, valued at ?240,779.12; manganese pro- 
duction by five companies amounted to 17,158.96 tons, worth 
F436,367.48. As seen from the above figures the aggregate pro- 
duction of gold, silver, and base metals during January-June 1939 
was F39,431,034.56. 

The mineral production for the first 6 months of 1939 increased 
over that of the same period in 1938. The gold and silver output 
in the Philippines increased by 14 percent because of the coming into 
production of seven new mines and the increased production of 
several mines already operating. Copper and iron ore shipments 
showed an increase of 165 and 35 percent, respectively. These two 
metals are shipped mostly to Japan, which is the only country that 
offers for the present the most advantageous price on account of its 
proximity to the Philippmes. 

Chromite and manganese, on the other hand, showed a decrease 
of 77 and 11 percent, respectively. The United States absorbs 
almost all of the chromite produced in the Philippines, while Japan 
buys most of the manganese with only a small portion of the ship- 
ments finding its way to Europe and America. During the period 
under review there have been no shipments of lead and zinc, although 
in 1938 shipments of these two base metals amounted toP78,507.67. 

ADMINISTRATION OF PUBLIC LANDS 

The classification, survey, and subdivision of public lands, es- 
pecially those lying along newly constructed highways, has progressed 
satisfactorily. The surveyed lots have been applied for by home- 
seekers who desire to own lands, rather than remain tenants or lessee 
farmers of big-landed estates. 

During the period under review, applications for public lands totaled 
3,611, over 2,500 of which were for homesteads. During the same 
period the Bureau of Lands approved 3,264 applications which 
covered 40,831.4192 hectares (102,078.54 acres); on the other hand, 
the patents issued numbered 3,311, as compared with 4,003 issued 
during the first 6 months of the preceding year. 

Many of the public-land leases held by aliens in Mindanao are 
about to expire, some of them in the early part of next year. Such 
leases, in the opinion of the Secretary of Justice, may not be renewed; 
hence the government may, upon surrender by alien lessees, subdivide 
them into lots or dispose of them by lease or sale. 

LUMBER INDUSTRY 

Production.— -From January 1 to Juno 30, 1939, 1,373,620.58 cubic 
meters of timber were cut from the public forests, as compared with 
1,247,832.85 cubic meters cut durmg the same period in 1938. The 
lumber production amoimted to 186,447,334 board feet up to Jime 
30, 1939, as compared with 177,523,281 board feet for 1938. There 
were 143 sawmills and 9 machine-logging operations without sawmills. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 19 

Investments. — The Philippine himber industry has a total invest- 
ment of P30,499,970, distributed as follows: 

Percent 

Americans 41. 9 

Filipinos 30. 

Foreigners 19. 1 

Filipinos- Americans-foreigners 9. 

Foreign markets.— The log export trade registered substantial gains 
because of the increased shipments to China, where the demand was 
active on account of the reconstruction work going on in the areas 
suffering from the effects of the present Sino-Japanese conflict. A 
total of 86,222,096 board feet of logs was exported during the period 
covered by this report, as compared with 58,419,568 board feet ex- 
ported during the same period in 1938. 

On the other hand, himber exports registered a decline, including 
exports to the United States. A total of 21,278,864 board feet of 
lumber was exported during the first 6 months of 1939, which was less 
than the 21,692,264 board feet exported during the same period in 
1938. 

Local markets. — The local markets were active despite the low 
prices of agricultural export crops. This Avas due to the numerous 
construction projects being undertaken by the government, by 
business enterprises, and hj the people in general. Lumber prices 
were slightly higher than those of last 5^ear. 

GOVERNMENT-OWNED CORPORATIONS 

The Philippine National Bank.- — During the first 6 months of 1939 
the Philippine National Bank made a net profit of Fl, 884, 068. 89; of 
this amount, P225,763.73 represents recoveries on charged-off assets 
and P4,684.32 adjustments of prior periods, so that the net operating 
profit of the bank amounted to Fl, 653, 620. 84. In accordance with 
theprovisionsof the Rehabilitation Act the total profit of PI, 884, 068. 89 
is due to the government. 

The net worth of the Philippine National Bank as of June 30, 1939, 
was P26,771,282.26 composed of capital of P10,000,000, surplus of 
P10,000,000 and reserves of P6,771,282.26. 

The total deposits on June 30, 1939, amounted to P122,600,228.30, 
compared with P138, 977, 698.40 on June 30, 1938, or a decrease of 
P16,377.470.10. Total resources amounted to P166, 911, 692.81 on 
June 30, 1939, compared to P186,870,549.41 on June 30, 1938, or a 
decrease of P19,958,856.60. This amount of P19,958,856.60 is 
represented mainly hj the reduction in government and semi- 
government deposits which show a decrease of P18, 121,803.50 com- 
pared with figures for June 30, 1938. 

The Manila Railroad Co. — During the first half of 1939 the total 
income of the Manila Railroad Co. from all sources (railway-operating 
revenues, revenues from miscellaneous operations, and nonoperating 
income) amounted to P6, 979,405. 56, an increase of P597,474.52, or 
9.36 percent over the total revenues for the first half of 1938. Of 
this total income of P6,979,405.56 the Manila Port Terminal, a division 
of the Manila Railroad Co. which takes charge of the arras tre 
service in the port of Manila, contributed P672,052.07 so that the 



20 ANNUAL EEPOKT OF THE PRESIDENT OF THE PHILIPPINES 

earnings of the Manila Railroad Co. proper exclusive of the income 
of the Manila Port Terminal amounted to P6,307,353.49. The net 
income or profit, after deducting all operating expenses, allowances 
for depreciation and retirements, interest on funded debts, tax ac- 
cruals, exchange premium, and hire of freight cars, amounted to 
F930,650.10 for the 1939 period, an increase of P9, 502. 59, or 1.03 
percent over the corresponding 1938 period. Of this net profit of 
F930,650.10, Fl 11,568.91 pertains to the Manila Port Terminal so 
that the net profit for the Manila Railroad Co. proper during the 
same period is F819,081.19. The revenues from all operations and 
activities of the company have shown gratifying increases; operating 
expenses, nevertheless, have also increased proportionately due to 
higher cost of labor and materials, an increased number of employees 
in the transportation service, and a generally higher scale of pay. 

Capital expenditures on new construction, additions, and better- 
ments and new equipment during the period under review were 
considerable, the net increase in capital investment amounting to 
Fl, 375, 253. 85. Work on the Tarlac-San Jose branch line project 
was completed during the early part of the year and a large number 
of individual items (under additions and betterments) were under- 
taken, among which may be mentioned permanent bridge construc- 
tion, track-relocation work, increase in yard trackage, construction 
of new station buildings and passenger shelters at various locations, 
installation of permanent concrete telegraph poles, etc. In addition 
to the 100 new all-steel 30-ton freight cars, received during the 
early part of 1939, new rail motor cars and trailers were constructed 
and placed in operation and quite a good number of automobiles, 
passenger busses, and freight trucks were acquired for the company's 
highway motor lines. 

During the period January -June 1940 work in the construction of 
the Manila Port Terminal Building (office and bonded warehouse) 
and of the Taal Vista Lodge (hotel), Tagaytay City, Cavite, was 
proceeding at a good rate of progress so that both structures could 
be opened for business in the early part of the 1939-40 fiscal year. 

In general, the outstanding feature of the company's activities has 
been further expansion. On February 1, 1939, regular train service 
was begun between Manila and San Jose, Nueva Ecija, via Tarlac; 
at San Jose there is a highway bus connection to and from all points 
in the Cagayan Valley. Through its joint traffic arrangements 
with other bus-transportation firms, the Manila Railroad Co. now 
serves practically every province in the island of Luzon. 

The company has also inaugurated highway transportation in the 
island of Mindanao. This bus line, at present operating principally 
in the Province of Cotabato with connections to Lanao and Davao 
Provinces, is intended to be the nucleus of an extensive land trans- 
portation system in Mindanao. 

Manila Hotel. — Despite a decline in guest registrations, the revenues 
of the Manila Hotel during the period under review amounted to 
?605,549.61 and operating expenses to F547, 959. 36, resulting in a net 
profit of F57,590.25as compared with P77, 387. 58 for the correspond- 
ing period in 1938. Improvements were made on the buildings and 
grounds of the ]Manila Hotel, while the Mayon Hotel in Legaspi, 
Albay, was opened under the operation of the Manila Hotel. The 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 21 

cash balance on June 30, 1939, after deducting expenses for taxes and 
hotel stocks, was F26,773.30. 

National Development Co. — The company as a parent organization 
realized a net profit of F2, 809, 089. 88 during the fiscal period from 
January 1 to June 30, 1939, as compared with the net profit of 
P5,321.52 for the fiscal year which ended December 31, 1938. The 
income of the company for the fiscal period was derived from the 
following sources: 

1. Stock dividends on investment in the Cebu Portland Cement 

Co T2, 750, 000. 00 

2. Cash dividends received on preferred stock of the Insular 

Sugar Refining Corpora.tion 39, 326. 56 

3. Interest on advances to subsidiaries and other companies 61, 557. 42 

4. Rentals derived from the Pureza property 11, 844. 35 

5. Rentals on property leased to the Philippine Packing Cor- 

poration 3, 870. 75 

6. Interest on bank deposits 7, 411. 94 

7. Miscellaneous receipts 433. 78 

2, 874, 444. 80 
Less: 

Net loss incurred in the operation of the Sabani 

Estate P220. 77 

General expenses 65, 134. 15 

— — 65, 354. 92 

Net total profit 2, 809, 089. 88 

As may be seen from the above figures, the marked increase in net 
income is accounted for principa,lly by the stock dividends received 
from the Cebu Portland Cement Co. and the cumulative cash divi- 
dends from the Insular Sugar Refining Corporation on the preferred 
shares owned by the company. The dividends from the Insular 
Sugar Refining Corporation represented the dividends only on pre- 
ferred shares of stock which had been accumulated from the time the 
refiner}^ was acquired until the end of their fiscal year on November 
30, 1938. The increase is rather abnormal because no such dividends 
were received for the previous fiscal period. Aloreover, the stock 
dividends of the Cebu Portland Cement Co. represented capitalized 
surplus reserves which had been accumulated out of the earnings in 
prior years. If the dividends thus received from the subsidiaries had 
not been declared, the net operating income of the National Develop- 
ment Co. for the 6 months would have amounted to only P19,763.00. 
The loss incurred by the Sabani Estate was due to cash donations, 
amounting to f 8,907.06, given to the Bureau of Education for the 
construction and maintenance of the schools in the estate. 

The net profit for the fiscal period, amounting to F2, 809, 089. 88 
shov/n above, has increased the net worth of the company from 
?26,652,789.58, as it was on December 31, 1938, to F29,461,902.96 as 
of June 30, 1939. 

Cebu Portland Cement Co. — During the period covering January 1 
to June 30, 1939, the Cebu Portland Cement Co. realized a net profit 
of P493,319.35, as against P504,342.73 earned during the calendar 
year 1938. The proportional increase in the profit is due to the 
increased production capacity of the Cebu plant brought about by 
the installation of an additional complete unit, and also to the im- 



22 ANNUAL REPORT OF THE PRESTDENT OF THE PHILIPPINES 

portation of foreign cement authorized by the President of the 
PhiHppines. 

On March 14, 1939, the stockholders increased the capital stock of 
the company from F5, 000,000 to F6,000,000 and the board of directors 
declared a stock dividend of 100 percent, amounting to P2, 750, 800, 
which was taken from the accumulated surplus and reserves thereby 
leaving only a balance of F359,319.60 in the surplus and reserve ac- 
count. Of the dividends declared, P2, 750, 000 was received by the 
National Development Co. and the balance of P'SOO by the minority 
stockholders. The profits made during the operating period from 
January 1 to June 30, 1939, amounted to P493,319.35, thus bringing 
up the company's surplus to F852,638.95. 

The net worth of the Cebu Portland Cement Co., another sub- 
sidiary of the National Development Co., as of June 30, 1939, was 
^6,354,238.95. 

National Rice & Corn Corporation. — Tliis subsidiary of the National 
Development Co. realized a net profit of F221,400.76 during the 
semester under review. This profit brought the company's surplus 
and reserves to F2, 653, 166.46. Its net worth with paid-up capital 
stock of P4,000,000 was P6,653, 166.46, as of June 30, 1939. 

The corporation again succeeded in its effort to stabilize the price 
of rice and corn, the staple food of the people. The anticipated short- 
age in the 1939 rice supply, owing to the drought during July and 
August last year, was averted when shipments of rice were received 
from the. United States, Saigon, and Siam. This imported rice was 
sold to rice-selling agencies throughout the Philippines when the price 
of the cereal showed a tendency to rise; and, by thus keeping a steady 
supply, the prevalent price of rice — especially in the Visayas and 
Bicol regions — was kept at a level easilj^ within the reach of consum- 
ers and which left a margin of profit in favor of native rice. 

The corporation also imported Celebes corn to offset an alarming 
shortage in this food staple. The timely importation and immediate 
distribution of Celebes corn in the Visayas saved the people from 
possible distress and prevented the speculators from manipulating 
prices. 

As a means of facilitatmg distribution, and to provide farmers 
with the needed facilities for crop storage, warehouses are maintained 
at strategic places. The corporation has three warehouses in Ca- 
banatuan, Nueva Ecija, with a capacity of 100,000 bags each; one in 
Munoz, same province, of 60,000-bag capacity; and another of the 
same capacity in San Miguel, Bulacan. Aside from these, the cor- 
poration leased other warehouses in vSantiago, Isabela; San Quintin 
and Resales, Pangasinan; Capas, Tarlac, and Moncada, Tarlac; 
Lubao and Arayat, Pampanga; Cuyapo and San Jose, Nueva Ecija; 
Baliuag, Bulacan; Cainta, Rizal; Naga, Camarines Sur; Legaspi, 
Albay; Cebu, Cebu; Tacloban, Leyte; Catbalogan, Samar; Cotabato, 
Cotabato; and Davao, Davao. 

Insular Sugar Refining Corporation. — During the period under 
review, this subsidiary realized a net profit of F492,707.21 which, 
together with its adjusted surplus of Pi 18,395.46 as of December 31, 
1938, gives a total surplus of P611,102.67. The total net worth of 
the corporation is P2, 514, 966. 67. The total assets of the corporation 



ANNUAL EEPOORT OF THE PRESIDENT OF THE PHILIPPINES 23 

amounted on June 30, 1939, to F5, 597, 953. 95; its liabilities, including 
deferred credits, totaled F3, 082, 987. 28. 

Before the National Development Co. acquired this corporation, 
the purchase of raw sugar needed by the refinery was financed by 
private banking institutions; but, after its acquisition, the parent 
company undertook to finance the corporation's operations with the 
company's surplus funds, deriving from such operations interest at 
the rate of 6 percent per annum. In view of the fact, however, that 
the National Development Co. will soon need its surplus funds, 
negotiations have been started with the Philippine National Bank for 
the future financing of the raw-sugar purchases of the Insular Sugar 
Refining Corporation. 

National Food Products Corporation. — This corporation, which is a 
subsidiary of the National Development Co., incurred a loss of 
^59,832.23, which reduced its net worth from PI, 500,000 to Fl,440,- 
167.77. There was, however, an increase of assets at the end of the 
fiscal period under review over those of December 31, 1938, amounting 
to F150,682.09. A total of P141,700 had been loaned to fish-pond 
owners who are under contract to deliver a steady fish supply to the 
cannery. The present operating results of this new venture should 
not be taken as an index of its future prospects, for it is not in full 
operation as yet. 

Fish camiing is at present the most important activity of the 
National Food Products Corporation. The lack of an adequate and 
steady supply of fish, which was the most serious problem of the cor- 
poration during the early part of the period under review, may be 
remedied to some extent when the corporation leases about 3,800 
acres of fish ponds so as to place them under its control. Fruits, 
vegetables, and meat products were also canned by the corporation 
during the summer months of April and May. 

This corporation also owns a can-making plant at Calle Pureza, 
Manila, which manufactures tin containers for the cannery and for 
sale to the public. The additional machinery for the manufacture 
of square cans for sardines was installed and made available for use 
in June 1939. 

At the end of the fiscal period under review the subscription of the 
National Development Co. to the capital stock of this corporation 
amounted to Fl, 500,000. 

The Sabani Estate. — During the year under review, peace and order 
prevailed in the estate. The discrepancies in the delineation of the 
boundaries of lots assigned to the tenants have been adjusted so that 
the conflicts occasionally arising as a result thereof have practically 
disappeared. 

Approximately 2,000 hectares (5,000 acres) of rice land are on 
lease to about 700 individual lessees upon whom a population of more 
than 2,000 depend for a living. The areas leased vary from a minimum 
of 2)^ to 15 acres, or an average of 7K acres for each lessee. Two 
hundred acres of low land have been recently opened in the estate and 
made available for rice planting; likewise, another area of approxi- 
mately 75 acres has been reserved as an experimental plot for growing 
cotton of the species adapted for use in the textile mill of the National 
Development Co., which owns and manages the estate. 



24 ANXrAL EEPORT OF THE PRESIDENT OF THE PHILIPPINES 

The books of the Sabani Estate show a net loss of F220.77 in its 
operation during- the agricultural year ending April 30, 1939. This 
loss is due not to ordinary expenditures for maintenance and super- 
vision but to the generous cash donations, amounting to F8,907.06, 
given to the Bureau of Education for the construction and main- 
tenance of five barrio schools within the estate. 

The net investment of the National Development Co. in the 
Sabani Estate, including its original purchase price of F288,338.90, 
amounted to P331,999.89. 

People's HomeSite Corporation.- — As a subsidiary of the National 
Development Co., this corporation was formally organized on October 
14, 1938, and immediately took over the administration of the Dili- 
man Estate, which the company had acquired for the purposes of the 
corporation. Topographical and subdivision surveys have already 
been completed and the principal highways and streets laid out, while 
others have already been actually constructed. This construction 
program has been carried out with the cooperation of the Bureau of 
Public Works. It is anticipated that in the course of a few months, 
this corporation will be able to begin actual construction of a model 
city at Diliman with the extension of the Metropolitan Waterworks 
system, the establishment of a model sewage-disposal plant, the con- 
struction of business establishments and of houses for the workmen 
and the middle class, and the laying out of parks and playgrounds. 

On June 30, 1939, the assets of this corporation totaled 
PI, 982, 386. 79, consisting of cash and current assets amounting to 
Fl, 068, 046. 24, and land, equipment, and other fixed assets valued at 
?914,340.55. 

Metropolitan Water District. — During the first half of 1939 the 
Metropolitan Water District had a total income of PI, 4 18,455. 09 and 
total expenditure of P796,222.87, thereby leaving a profit of P622,- 
232.22, or an increase of F108,536.43 over that for the same period in 
1938. Of the above 1939 profit, F584,233.59 was set aside to meet 
payments to the sinking fund for the bonded indebtedness of the 
district and expenses for improvements and extensions of water and 
sewer facilities, so that only the sum_ of P37,998.63 actually reverted 
to the accumulated surplus. 

The projects completed by the district during this period included 
the Bicti-Novaliches Aqueduct, at a cost of P567,550; the Metro- 
politan Water District OSice Building, at a cost of P245,254.70; the 
Filter Office Building, P26,000; and the Antipolo water tank, 
P3,698.31. The laying of sewer mains in Santa Ana and Pandacan, 
districts of Manila — which is part of the district's 10-year program of 
sewerage extension involving a total outlay of P8, 500, 000 — has 
already been started with an appropriation of P300,000. 

A 4-year program of storm-drain construction for the city of 
Manila, for which Commonwealth Acts Nos. 242 and 330 appro- 
priated an outlay of F2, 200, 000, was started in March 1938. Of this 
appropriation P545,358.09 was already expended for drainage improve- 
ments, of which P314,575.51 was disbursed during the period under 
review. 

The district, in the interest of the public, made a general reduction 
of water and sewer rates and eliminatecl the service maintenance 
charge. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 25 

The net worth of the district, as of June 30, 1939, was P17,441,- 
427.39, or an increase of P526,575.88 over its net worth in 1938. 

NATIONAL RELIEF 

Emergenc}?' relief aid was extended by the National Relief Adminis- 
tration with the effective cooperation of the Philippines Red Cross to 
poor families in the provinces and municipalities that were hit by 
destructive typhoons and fires. These fires burned down 640 build- 
ings and homes and caused 5,307 persons to be given emergency aid. 
A big fire in Lian, Batangas, destroyed 114 houses and required 
assistance for 761 persons. San Fernando, Pampanga, was swept by a 
fire which burned down 216 buildings in the commercial district and 
the church, rendering 984 indigent persons homeless. These were 
followed b}^ other big fires in Bulan, Sorsogon; Alitagtag, Batangas; 
Tagig, Rizal; Cagayan, Misamis Oriental; and Bugasong, Antique. 

A small typhoon in Surigao destroyed 20 houses in Barrio Tago, 
municipality of Lingig, and affected 980 persons who were given 
immediate assistance. 

The National Relief Administration assisted financially in the 
control of a dysentery epidemic in Tacloban, Leyte, by furnishing 
funds for the hospitalization and segregation of patients. Aid was 
also extended to 80 families of laborers of the Monteverde Lumber Co., 
at Davao, who were abandoned, by their employer; and to 107 laborers 
from Zambales who came to Manila to present their complaint to the 
Department of Labor for the nonpajmient of their wages by their 
emxployer. 

The rehabilitation of the poor, by providing work in the repair and 
reconstruction of local roads and other public improvements, was 
effected in the Provinces of Sorsogon, Samar, Cebu, Romblon, Leyte, 
Agusan, Mindoro, Cagayan, Palawan, Tarlac, Isabela, Tayabas, and 
Nueva Ecija, where the typhoons, floods, and droughts during the 
latter part of 1938 caused devastation, poverty, and shortage of food. 
At the same time, seeds of quick-growing crops were distributed to 
indigent farmers as a food-production measure. 

In. the serious fire at San Fernando, Pampanga, on February 9, 
which burned the business district of the town, the United States 
Army rendered assistance in extinguisliing the fire and also in relief 
operations by assignmg men to carry victims to safety, to guard 
property, and to maintain peace and order. The Philippine Army 
cooperated in a similar way in other major disasters that occurred in 
the different parts of the country. 

The National Relief Administration has given aid to 4,245 unem- 
ployed persons in Manila by placing 2,973 of them in regular public- 
works projects and 1,272 in special relief projects. For the repairs of 
public school buildings, which were partially damaged by the typhoon 
of December 1938, aid was also granted during this period. 

From the unexpended appropriations authorized by Common- 
wealth Acts Nos. 90 and 266, there was expended for relief purposes 
a total of F179,361.05, thus leaving on June 30, 1939, an unexpended 
balance of Fl,036, 637.43, of which P868,622.40 is still unallotted. 

Philippines Red Cross. — Durmg the period under review the 
Pliilippines Red Cross (American National Red Cross) cooperated 



26 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

closely with the National Relief Administration in extending emer- 
gency relief aid to poor families affected by public calamities. The 
emergency aid consisted in rice, canned goods, clotliing, materials for 
home reconstruction, and sometimes medicines. From January to 
June, 37 fires, which destroyed 744 buildings and houses, occurred 
thi^oughout the Philippines, and the Red Cross assisted 6,930 persons 
who were rendered homeless. 

The 168 operating dental clinics of the Philippines Red Cross visited 
5,302 schools and inspected and treated 410,331 school children. 
Fifty -four nursing services with 68 nurses were in operation in 35 
provinces; they made 38,636 household visits and handled 33,130 
maternity, morbidity, and health cases, aside from 41,528 nurse 
inspections given to children. The leprosy department of the organi- 
zation assisted 490 cases consisting of lepers' dependents and negative 
lepers and their families. 

The Philippines Red Cross had total receipts of P501,160.26 and 
expenditures of !P3 15,548.78 for all its services, thereby leaving total 
cash resources of F185,611.48 at the close of the period covered by 
tliis report. 

THE BUENAVISTA ESTATE LEASE 

For several years now the Buenavista Estate, which is owned by 
the San Juan de Dios Hospital, has been the source of agrarian dis- 
putes and disturbances arising from the annual liquidation of crops 
and the settlement of crop rentals. This estate, which has an area of 
27,400 hectares (67,700 acres), comprises the municipalities of San 
Ildefonso and San Rafael and two barrios of the municipality of 
Bustos, all in the Province of Bulacan. Lately a number of lessees 
and tenants instituted court proceedings and contested, with adverse 
results, the validity of the title of the San Juan de Dios Hospital. 
The case has been elevated to the Supreme Court of the United States 
for review. 

The deplorable economic and social conditions prevailing in the 
Buenavista Estate have been due mostly to increasing population as 
contrasted with decreasing soil fertility, lack of credit facilities, 
antiquated and inefficient system of agriculture, dependence on one 
crop, existence of usury, and the absence of a marketing organization. 

To remedy this vexing problem and, at the same time, provide 
immediate relief to the 6,000 heads of families holding leases or work- 
ing as tenants for leaseholders therein, the Commonwealth govern- 
ment entered into a contract of lease of the Buenavista Estate with 
the Roman Catholic Church and the San Juan de Dios Hospital on 
March 4, 1939. 

Under the terms of the contract, the government lease runs for a 
period of 25 years at an initial rental of F100,000, beginning January 
1, 1939, and increasing by F2,000 every succeeding year. The govern- 
ment, as lessee, has been granted an option which is exercisable within 
the period of lease to purchase the property for F3,000,000, payable 
in cash. 

The management of Buenavista Estate is under the supervision of 
the Rural Progress Administration, a g'overnment entity, which also 
has charge of home sites that may be purchased by the government 
from church or privately-owned estates. 



ANNUAX, REPORT OF THE PRESIDEl^J'T OF THE PHILIPPINES' 27 

Immediately after the lease of the Buenavista Estate, roads were 
opened up to enable the tenants and lessees to transport their prod- 
ucts from their farms to marketing centers. Home sites have been 
surveyed and these will be distributed among the present tenants and 
leaseholders working there. The development plan of the govern- 
ment includes the establishment of clinics and other health and sani- 
tary facilities, the drilling of artesian wells, and the construction and 
maintenance of schools for the children of the 6,000 families living on 
the estate. 

A cooperative association with the present Buenavista lessees and 
tenants as members has been organized also. The objectives of the 
cooperative include: (1) Granting of crop loans to members at a rate of 
interest not exceeding 6 percent annually; (2) the purchase of work 
and breeding animals, farm implements, seeds, fertilizers, and other 
farm necessities, and their sale to the members; (3) operation of ware- 
houses, rice mills, and threshers; (4) propagation of crops which are 
suited to the soil and climatic conditions of Buenavista; (5) encourage- 
ment of the raising of hogs, poultry, and the promotion of the dairy 
industry; (6) direct marketing of the products of the members; and 
(7) the engagement in other agricultural, industrial, and commercial 
activities which the cooperative association may find profitable. 

THE JEWISH REFUGEE COLONIZATION PLAN 

The cooperation of the Commonwealth government was solicited by 
the Department of State of the United States m the solution of the 
problem confronting political refugees from Germany. In response 
to this call for humanitarian service, plans were carefully considered 
for the admission into the Philippines of a limited number of refugees 
upon visas given by American consuls with the previous approval of 
the Commonwealth government. 

The Department of State, thi^ough the Office of the United States 
High Commissioner, informed the President of the Philippines that 
an international conference had been called in London on the above 
subject and asked him whether the Commonwealth government would 
be willing to participate in such conference. The Philippines decided 
to take part in it, and the President of the Philippines officially in- 
formed the Department of State that the present administration was 
favorably inclined to a plan which would permit the establishment of 
refugee settlements in Mindanao and other thinly populated areas of 
the country, subject to the following conditions: 

(1) That a responsible committee representing the refugees or act- 
ing on their behalf shall submit a satisfactory plan to finance such 
settlements ; 

(2) That the settlers will agree to engage in subsistence farming and 
not to grow money crops that now enjoy protection in the American 
market ; 

(3) That until they become Filipino citizens they shall reside in the 
land reserved for them; 

(4) That the number of refugees to be admitted as settlers shall be 
fixed from time to time by the Philippine government, acting upon 
the recommendation of the committee in charge of the settlement 



28 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

projects, having in view the committee's ability to take care of the 
settlers, provided that the total number shall not exceed 10,000 
persons; and 

(5) That the plan contemplated and its execution shall be subject 
to the immigration laws of the Philippines in force at present, or which 
may hereafter be passed by the National Assembly. 

It was tentatively estimated that the Piiilippines would be able to 
absorb at the end of 10 years 10,000 Jewish refugees at the rate of not 
more than 1,000 annually. 

Through the Office of the United States High Commissioner, the 
Department of State advised the President of the Philippines on 
April 1, 1939, that a scientific mission — which was placed under the 
auspices of President Roosevelt's Advisory Committee on Political 
Refugees — had been formed in the United States to study the possi- 
bilities of refugee colonization in Mindanao, in accordance with the 
conditions by the Commonwealth government. 

The five-member mission, Avith Mr. O. D. Hargis as chairman and 
Dr. Stanton Youngberg as secretary, arrived in the Philippines in the 
middle of April, and it was given all the desired facilities by the Office 
of the United States High Commissioner and the Commonwealth 
government. Early in May it surveyed the island of Polillo, off the 
east coast of Tayabas Province, for possible farm settlements. In 
June it went to Mindanao and made there an extensive survey of 
indicated areas in the unoccupied regions of the Provinces of Bukidnon, 
Lanao, Cotabato, and Agusan. 

SPECIAL MISSION TO THE UNITED STATES 

A special mission, headed by the Honorable Sergio Osmena, Vice 
President of the Philippines, was sent by the government of the 
Commonwealth to the United States for the purpose of conferring 
with the President of the United States and other authorities of the 
American Government on matters connected with the execution of the 
recommendations contained in the report of tlie Joint Preparatory 
Committee on Philippine Affairs, which had made a thorough study of 
the problem of trade relations between the two countries. The 
mission left Manila on October 17, 1938, and arrived in Washington, 
D. C, on November 17, 1938. After its arrival the mission started a 
series of conferences with Secretary Sayre, Chairman of the Inter- 
departmental Committee on Pliilippine Aft'airs, and his associates who 
were in charge of preparing the draft of the legislation to implement the 
report of the Joint Preparatory Committee on Philippine Affairs. 
These conferences were not concluded until February 15, 1939, v/hen 
a final agreement was reached. On January 26, 1939, previous to this 
final agreement, identical bills had been introduced in the vSenate and 
the House of Representatives (S. 1028 and H. R. 3330). Although 
complete agreement had not been reached on all the details of the 
Philippine bill, the remaining points of disagreement were few and of a 
minor character. These bills embodied the recommendations of the 
Joint Preparatory Committee which covered two periods: (1) The 
period from 1940 to July 4, 1946; and (2) the period from 1946 to 1960. 
During these tv.^o periods, annually declining quota or trade prefer- 
ences were provided for. 



ANNUAL REPOUT OF THE PRESIDENT OF THE PHILIPPINES 29 

The Senate Committee on Territories and Insular Affairs held public 
hearings on S. 1028 from February 16 to March 15, 1939. During 
these hearings it became evident that there would be vigorous opposi- 
tion from some quarters, especially to that portion of the bill providing 
for mutual trade preferences after independence. 

During and after the hearings the mission exerted the utmost efforts 
to convnice the members of the committee that the passage of the 
proposed legislation was urgently needed by the Philippines. On 
April 5, 1939, in behalf of the Philippine government, I sent cable- 
grams to Senator Tydings and Congressman Kocialkowski, endorsing 
the Philippine bill. 

The Senate Committee on Territories and Insular Affairs held two 
executive sessions on S. 1028. At the first session, on April 11, no 
decision was reached; at the second session, on April 18, the committee 
decided to take no action on the pending bill. 

After this decision of the Senate committee the mission conferred 
with Secretary Sayre and a tentative agreement was reached on a new 
plan by which congressional approval would be sought for the provi- 
sions of the bill covering the period from 1940 to 1946, which I accepted 
in the name of the Philippine government. The President of the 
United States approved the plan and, in a conference, secured the 
unanimous assent of Senators Tydings, Pittman, Hayden, King, and 
McKellar. On May 10, 1939, a modified Philippine bill was simul- 
taneously introduced in the Senate and the House of Representatives 
by Senator Tydings and Congressman Kocialkowski (S. 2390 and 
H. R. 6262,_ respectively). On May 17,_ 1939, the Senate Committee 
on Territories and Insular Affairs unanimoaslj'' agreed to report out 
the new bill favorably (S. committee Report No. 453), and on May 31, 
1939, the Senate passed the bill without a record vote. 

On June 14, 1939, President Roosevelt conferred with the chair- 
man and other members of the House Committee on Insular Affairs 
regarding the proposed legislation. Thereafter, the committee con- 
sidered the bill in various executive sessions. After five sessions held 
on June 15, 20, 21, 27, and 29 the House Committee on Insular 
Affairs had not yet reached a decision.^ 

CONCLUSION 

I wish to make of record again my warm appreciation of the sincere 
cooperation and unselfish assistance extended by the different agencies 
of the Government of the United States in the Philippines. The 
Army and Navy have been, as in the past, quite generous with their 
assistance whenever emergencies needed it, while the United States 
Public Health Service worked in close cooperation with the Philip- 
pine government in the maintenance of an effective quarantine service 
in the Philippines. 

The Army has continued to render valuable service to the Common- 
wealth government by the detail of officers to the United States 
Military Mission, allowing the use of military reservations by the 
Philippine army in connection with the country's program, of trainee 

1 The House committee reported out the PhHippine bill favorably on July 6, 1939; the House approved 
the bill under suspension of the rules on July 31, 1939. On August 3, 1939, the Senate approved the House 
bill without amendment and, on August 7, 1939, the bill was signed by the President of the United States. 



30 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



instruction, and extending material help to the people who live in the 
vicinity of the United States Army reservations. 

The Naval Shore Patrol of the United States Asiatic Fleet lent a 
full measure of cooperation to the Philippine authorities in the work 
of law enforcement and crime prevention. The proper agency of the 
United States Government also gave valuable help toward the 
organization of an effective Offshore Patrol service under the super- 
vision and control of the Philippine Army. 

I wish also to make public my sincere appreciation of the sympa- 
thetic attitude and spirit of cooperation displayed by Maj. Gen. 
Jolin H. Hughes, commanding the Philippine Department of the 
United States Ai-my, and by the late Rear Admiral George J. Meyers, 
commanding the Sixteenth United States Naval District in the Philip- 
pines, as well as by their respective successors, Maj. Gen. Walter S. 
Grant, United States Army, and Rear Admiral John M. Smeallie, 
United States Navy. 

Although the period covered by this report is quite short, the 
various departments and entities of the Commonwealth government 
have accomplished substantial results tlu'ough the unstinted efforts 
of the officials and employees of the government, whose loyalty and 
willingness to sacrifice personal convenience in the interest of the 
public service deserve the highest commendation. 

Good will and" complete imderstanding exist between the Govern- 
ments of the United States and of the Philippines, and we approach 
the next years of the present Commonwealth regime under the pro- 
visions of the Tydings-McDuffie law secure in the belief and anticipa- 
tion that the economic uncertainties of the future will be reduced 
with the enactment of the Tydings-Kocialkowski Act. 
Respectfully, 

Manuel L. Quezon. 

APPENDIXES 

Appendix I. Financial Operation of the Commonwealth Government 
During the Fiscal Year 1939 

Income, expenditures, and surplus. — During the fiscal year 1939, the National 
Government realized a total income of P63,735,626.62 from all the current funds, 
excluding the coconut oil excise tax income of P25,7.57,352.16, while the total 
expenditures from the same, that is, excluding coconut oil excise tax charges, 
amounted to F73,095,491.93. The following statement shows the result of the 
operation of each of the current funds during the j^ear: 



Fund 


Collections 


Expenditures 


Surplus 


General fund- . 


P48, 609, 573. 66 

16,637,070.87 

240, 320. 00 


P65, 608, 505. 64 

8, 998, 004. 20 

240, 320. 00 


1 P16, 998, 931. 98 


Special funds 


7, 639, 066. 67 










Total - 


65, 486, 964. 53 


74, 846, 829. 84 


I 9, 359, 865. 31 






Less: 

General fund appropriations considered as 


1,014,920.00 
496, 097. 91 
240, 320. 00 


1, 014, 920. 00 
496,097.91 
240, 320. 00 




Reversions of surplus to creneral fund con- 
sidered as expenses of special funds 




Reversion of income to general fund con- 








Total... 


1, 751, 337. 91 


1, 751, 337. 91 








Net total . . . .. 


63, 735, 626. 62 


73, 095, 491. 93 


I 9, 359, 865. 31 







« Deficit. 



ANNUAX, REPORT OF THE PRESIDENT OF THE PHILIPPINES 



31 



The operation of the reserve funds for the same period is shown in the following 
statements : 



Fund 


Collections 


Expenditures 


Surplus 




P2, 070, 973. 28 

1, 309, 374. 25 

62, 270, 975. 00 


P334, 105. 70 

293, 127. 48 

74, 955, 551. 00 


PI, 736, 867. 58 


Exchange standard fund - 


1, 014, 246. 77 




1 12, 684, 576. 00 






Total 


65, 651, 322. 53 


75, 584, 784. 18 


1 9, 933. 461. 65 







1 Deficit. 



Income in 1939, all funds (general, special, and bond funds combined, excluding 
coconut oil excise iaa:).— The combined collections of the general, special, and 
bond funds, excluding the coconut oil excise tax realized in 1939, were as follows: 



Items 


Amount 


Ratio to 

total 
income 




P49, 293. 675. 76 

2, 272, 802. 71 

9, 918. 954. 78 

364, 933. 37 

199, 800. 00 

1, 685, 460. 00 


Percent 
77.34 




3.57 




15.56 




.57 




.31 




2.65 








Total 


63, 735, 626. 62 


100.00 







Appendix II. The Coconut Oil Excise Tax Fund 

A. Loans, investments, commercial enterprises, revolving funds, i. e., returnable 

or self-liquidating. 

B. Capital items or nonrecurring or extraordinary expenditures. 

C. Ordinary expenditures and others. 

1937 

A. LOANS, INVESTMENTS, AND COMMERCIAL EXPENDITURES (NOT TRUE 

EXPENDITURES) 



Item 



Appropriated 



Released 



Expended 



Reverted 



1. Subscription to the capital stock of the 

National Development Co 

2. Subscription to the capital stock of the 

Manila R. R. Co.: 

(a) 

(6) 

3. Loan to Manila R. R. Co. (Common- 

wealth Act No. 4) 

4. Purchase of large-landed estates used 

as homesites (Commonwealth Act 
No. 20) 

5. Acquisition of land and construction 

of buildings for laborers (Act No. 
4184) 

6. Revolving fund for waterworks (Com- 

monwealth Act No. 125) 

7. Restoration and replacement of sinking 

fund investments in Manila R. R. 
Co. and PhOippine Ry. Co. bonds 
(Act No. 3227) 

Total 



PIO.OOO, 000. 00 

1, 000, 000. 00 
1, 300, 000. 00 

9, 990, 000. 00 

1, 000, 000. 00 

250, 000. 00 

2, 000, 000. 00 

369, 522. 50 



P10,000, 000. 00 

1, 000, 000. 00 
1, 300, 000. 00 

9, 990, 000. 00 

1, 000, 000. 00 

250, 000. 00 

2, 000, 000. 00 

369, 522. 50 



PIO.OOO, 000. 00 

1. 000, 000. 00 
1, 300. 000. 00 

9, 990, 000. 00 

1, 000, 000. 00 

250, 000. 00 



P2,000, 000. 00 



369, 522. 50 



25, 909, 522. 50 



25, 909, 522. SO 



23, 909, 522. 50 



2, 000, 000. 00 



32 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



Appendix II. The Coconut Oil Excise Tax Fund — Continued 

1937 
B. CAPITAL ITEMS 



Item 



Appropriated 



Released 



Expended 



Reverted 



1. School buildings (Commonwealth Act 

No. 240) 

2. Reforestation and afforestation of 

watersheds (Commonwealth Act 
No. 119) 

3. For organizing the National Power 

Corporation (Commonwealth Act 
No. 120) - 

Total 



P5, 050, 000. 00 
250, 000. 00 
250, 000. 00 



P4, 775, 600. 00 
250, 000. 00 
250, 000. 00 



P4, 751, 600. 00 
250, 000. 00 
250, 000. 00 



5, 550, 000. 00 



5, 275, 600. 00 



5, 251, 600. 00 



C. ORDINARY EXPENDITURES 



For stabilizing the price of buntal 
fibers (Commonwealth Act No. 147). 

Survey and subdivision of agricultural 
land.s (Commonwealth Act No. 166). 

Census (Commonwealth Act No. 170). 

Total 



P500, 000. 00 



100, 000. 00 
1, 500, 000. 00 



2, 100, 000. 00 



P500, 000. 00 



100, 000. 00 
1, 500, 000. 00 



2, 100, 000. 00 



P500, 000. 00 

100, 000. 00 
1, 500, 000. 00 



2, 100, 000. 00 



1988 

A. LOANS, INVESTMENTS, AND COMMERCIAL EXPENDITURES (NOT TRUE 

EXPENDITURES) 



Item 



Appropriated 



Released 



Expended 



Reverted 



1. Subscription to the capital stock of the 

Manila R. R. Co 

2. Purchase of large-landed estates used 

as homesites (Commonwealth Act 
No. 260) 

3. Reimbursement of appropriation for 

irrigation systems (Commonwealth 
Act No. 369) 

4. For lease of landed estates to be sublet 

to occupants (Commonwealth Act 
No. 378) — Advance to Rural Prog- 
ress Administration (Commonwealth 

Act No. 420) 

6. Creation of revolving fund for perma- 
nent markets, slaughterhouses, and 
waterworks (Commonwealth Act 
No. 403) 

6. National Abaca & Other Fibers Cor- 

poration (Commonwealth Act No. 
332) 

7. Subscription to the capital stock of 

National Development Co. (Com- 
monwealth Act No. 182) 



P2, 000, 000. 00 
2, 000, 000. 00 
4, 800, 000. 00 

1, 500, 000. 00 

10, 000, 000. 00 
11, 000, 000. 00 
10, 095, 550. 50 



P2, 000, 000. 00 



P2, 000, 000. 00 



10, 000. 00 



1, 500, 000. 00 



3, 000, 000. 00 



10, 000. 00 



1, 496, 007. 47 



3, 000, 000. 00 



10, 095, 550. 50 



10, 095, 550. 50 



Total 41,395,550.50 



16, 605, 550. 50 



16, 601, 557. 97 



B. CAPITAL ITEMS 



and afforestation of 
(Commonwealth Act 



1. Reforestation 

watersheds 
No. 245). _.. 

2. Aid to city of Manila: Public improve- 

ments (Commonwealth Act No. 242). 

3. Reforestation and afforestation of 

watersheds (Commonwealth Act 
No. 304) 

4. Public-works fund: Roads, hospitals, 

and schools (Commonwealth Act 
No. 330) ,. 



Total. 



P258, 198. 00 
1, 000, 000. 00 

1, 000, 000. 00 

88, 688, 100. 00 



90, 946, 298. 00 



P258, 198.~00 P225, 057. 95 

1, 000, 000. 00 



1, 000, 000. 00 

468, 867. 96 

57, 802, 105. 00 



59, 529, 170. 96 



376, 587. 62 
16, 849, 808. 56 



18, 451, 454. 13 



P33, 140. 05 



33, 140. 05 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



33 



Appendix II. The Coconut Oil Excise Tax Fund — Continued 

19S8 
C. ORDINARY EXPENDITURES 



Item 


Appropriated 


Released 


Expended 


Reverted 


1. Survey of public lands (Common- 

wealth Act No. 347) 

2. Promotion of tourist traffic (Com- 

monwealth Act No. 245) 

3. Survey of public lands (Common- 

wealth Act No. 166) 


P2, 500, 000. 00 

100, 000. 00 

163, 980. 00 

150, 000. 00 

65, 570. 00 

200, 000. 00 

50, 000. 00 
2, 100, 000. 00 

50, 000. 00 


P544, 562. 09 

100, 000. 00 

163, 980. 00 

150, 000. 00 

65, 570. 00 

200, 000. 00 

50, 000. 00 
2, 100, 000. 00 

60, 000. 00 


P259, 674. 15 
100, 000. 00 
116, 337. 45 
143, 825. 84 
54, 883. 33 
188, 552. 08 






P47, 642. 55 


4. Operation of air mail (Commonwealth 
Act No. 245) - 


6, 174. 16 


5. TB X-ray units (Commonwealth Act 

No. 245) --- - 


10, 686. 67 


6. Malaria control (Commonwealth Act 
No. 245) 


11, 447. 92 


7. Health camps for nourishment (Com- 


50, 000. 00 


8. Census (Commonwealth Act No. 346). 

9. Research: Bureau of Science (Com- 

monwealth Act No. 245) 


2, 100, 000. 00 
43, 834. 26 




6, 165. 74 






Total 


5, 379, 550. 00 


3, 424, 112. 09 


3, 007, 107. 11 


132, 117. 04 







1939 

A. LOANS, INVESTMENTS, AND COMMERCIAL EXPENDITURES (NOT TRUE 

EXPENDITURES) 



Item 


Appropriated 


Released 


Expended 


Reverted 


1. Subscription to the capital stock of the 
Manila R R Co 


¥2, 000, 000. 00 
4, 000, 000. 00 


P2, 000, 000. 00 


V2, QOO, 000. 00 




2. Subscription to the capital stock of the 
National Land Settlement Admin- 
istration (Commonwealth Act No. 
441) 

Total 












6, 000, 000. 00 


2, 000, 000. 00 


2, 000, 000. 00 







B. CAPITAL ITEMS 



1. Reforestation and afforestation of 
watersheds (Commonwealth Act 
No. 119) 


F128, 180. 00 

8, 600, 000. 00 
5, 295, 086. 60 


ri28, 180. 00 


P127, 193. 37 


P986. 63 


2. Transfer of the University of the Phil- 

ippines to Diliman Estate, Quezon 
City (Commonwealth Act No. 442) _ 

3. Pubhc-works funds: Schools, roads, 

etc. (Commonwealth Act No. 469).. 
















Total 


13, 923, 266. 60 


128, 180. 00 


127, 193. 37 


986. 63 







C. ORDINARY EXPENDITURES 



1. Promotion of tourist trade (Common- 
wealth Act No. 300) 


P50, 000. 00 
81, 990. 00 
25, 000. 00 
75, 000. 00 

170,000.00 
32, 800. 00 

250, 000. 00 


P50, 000. 00 
81, 990. 00 
25, 000. 00 
75, 000. 00 

170, 000. 00 
32, 800. 00 


P50, 000. 00 
52, 598. 18 
20, 769. 99 
75, 000. 00 

101, 313. 74 
15, 570. 92 




2. Survey of public lands (Common- 

wealth Act No. 166) 

3. Research: Bureau of Science (Com- 

monwealth Act No. 300) 

4. Operation of domestic air mail (Com- 

monwealth Act No. 300) 

5. Malaria control (Commonwealth Act 

No. 300) 

6. TB X-ray units (Commonwealth Act 

No. 300) 

7. Agronomical survey of the Philippines 

(Commonwealth Act No. 418) 


P29, 391. 82 
4, 230. 01 


68, 686. 26 
17,229.08 








Total 


684, 790. 00 


434, 790. 00 


315, 252. 83 


119, 537. 17 







34 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



Appendix II. The Coconut Oil Excise Tax Fund — Continued 

1939 

AGGREGATE OF EXPENDITURES TO JUNE 30, 1939 



Items 


-Appropriated 


Released 


Expended 


A. Loans, investments, commercial enterprises, 
revolving funds, i. e., returnable or self- 
liquidatins: 
1937 appropriations . _ 


P25, 909, 522. 50 
41, 395, 550. 50 
6, 000, 000. 00 


T25. 909, 522. 50 
16, 605. 550. 50 
2, 000, 000. 00 


P23, 909, 522. 50 


1938 appropriations 

1939 appropriations - - 


16,601,557.97 
2, 000, 000. 00 






Aggregate 


73, 305, 073. 00 


44, 515, 073. 00 


42,511,680.47 


B. Capital items: 

1937 appropriations 

1938 appropriations 

1939 appropriations 


5, 550. 000. 00 
90, 946, 298. 00 
13, 923, 266. 60 


5, 275, 600. 00 

59, 529, 170. 96 

128, ISO. GO 


5, 251, 600. 00 

18, 451, 4,54. 13 

127. 193. 37 


Aggregate 


110,419,564.60 


64, 932, 950. 96 


23, 830, 247. 50 


C. Ordinary expenditures: 

1937 appropriations 

1938 appropriations 

1939 appropriations - . . . .-- - . 


2, 100, 000. 00 

5, 379, 550. 00 

684. 790. 00 


2, 100, 000. 00 

3,424,112.09 

434, 790. 00 


2, 100. 000. 00 

3, 007, 107. 11 

315, 252. 83 






Aggregate -_ ....- 


8, 164, 340. 00 


5, 958, 902. 09 


5, 422. 359. 94 






Aggregate total (gross) 


191, 888, 977. 60 
2, 285, 780. 89 


115, 406, 926. 05 
2, 285, 780. 89 


71, 763, 687. 91 


Less reversions to the unappropriated surplus 








Aggregate total (net) -------- ---- 


189, 603, 196. 71 


113, 121, 145. 16 


71, 763, 687. 91 







Appendix III. Coconut Oil Excise Tax Fund Charges Excluded 

.EXPENDITURES BY FUNCTIONAL PURPOSES 



Items 



Fiscal year 1939 



Ratio to 
total ex- 
penditures 



Revenue service 

Expense of revenue collection 

Operating expense of commercial and industrial units 

Debt service 

Interest and exchange on National Government bonds 

Contribution to sinking funds of National Government bonds 

General welfare service 

Executive direction and control 

Legislation 

Adjudication 

National defense 

Law and order 

Public health 

Protection against force majeure 

Regulation of public utilities 

Other protective service 

Public education 

Public correction 

Public charity 

Other social improvement 

Conservation of natural resources 

Development of commerce 

Development of aj^riculture 

Development of industrial arts and sciences 

Development of mineral resources 

Other economic development 

Philippine publicity 



Percent 
8.38 



1, 460, 605. 80 


2.00 


4, 668, 108. 89 


6.38 


3, 250, 594. 84 


4.45 


2, 936, 394. 68 


4.02 


314, 200. 16 


.43 


50, 894, 535. 06 


69.63 


5, 852, 533. 18 


S.Ol 


958. 705. 72 


1.29 


1, 939, 371. 56 


2.63 


10, 825, 800. 93 


l.--.. 14 


2,491,121.59 


3.38 


2, 835. 337. 44 


3.85 


93, 871. 82 


.12 


72, 895. 01 


.09 


599, 192. 86 


.81 


14, 665. 942. 90 


20.03 


757. 926. 93 


1.03 


615. 301. 48 


.82 


252,617.82 


.32 


679. 742. 52 


.90 


3, 161, 792. 20 


4.32 


3, 763, 355. 49 


5.14 


140. 107. 98 


.17 


137, 174. 72 


.16 


986, 516. 61 


1.34 


65, 226. 00 


.08 



V. Pii 



De 



During the fiscal vear 1939 the total bonded indehtodness of the national governmcn 

■ fdllowing statement is a detailed account of the status of the bojided dcljt of tlie Conunonwcalth for the fiscal year ending .June 30, 1 



P79,582,982.8t. 



DelaiUd slaiement of all the ouUtanding bonds iaaued by the 



ted to 1»148,937,000, of which l»6!l,3.')4,017.16 was covered by existing sinking fnmls, tinia leavini 
lunc 30, 1939: 

branches and entities of the CommonweoUh of the Philip-pines, showing the hintnry and the present status of rnc/t 



a net. niitstaniliiig bonded debt 
! of June .W, t'JSH 





Nature of bond 


Authority of issue 






Dura- 
tion in 


Interest 


^ 




Sulking fund reserve 


Net bonded 
liability 








¥sia°n'd 












a Legislature 


Issue Maturity 


Total 


Issue 


Unissued 


C„b 


■rfs- 


Canceled 
bond Act 
No. 3014 


Total 


Purpo,se of Issue 






No. Date approved 




NatloDBt OoveruiiicDt: 

PubllrlmprovciDcnl of 1909 - — 

Hflllroad purchft.**' - 


Ri-gisterctI . 

-do 

Coupon 


July 21. 1021 

rto 

May 31.11)22 


1954 

3412 
3413 

3417 


May 20,1909 
Vcb. 4,1910 
Feb. 5,1921 
Feb. 2,1022 
Mar. 5.1922 

Doc. 7,192; 
do 

'.-V-ii'.'...'-'.'. 


Aue. 1,1009 

Aug, 1.1921 
Fob. 1, 1922 
July 1,1022 
July 15.1922 

Mar, 1,1928 
Sept. 15, 1920 

Apr. 1. 1928 
Oct. 15,1929 
Apr. 15,1930 


Aug. 1,1030 
Duo. 1. 19411 
Aug. 1,1911 

July 1, 19.52 
July 15, 19,52 

Septl 15! 1959 

Apr, 1, 1958 
Oct. 15,1959 
Apr. 15,19110 


10-39 
30 


Pttttat 

MM 
'4)4 

■4V4 


r3, 000, 000 
8,000,000 

10,900,900 
4,1,000,000 

1,500,000 

1000:000 

1,500,000 
1,000,000 
1,850,000 


M, 000, 000 

10,000.000 
23.000,000 
46,000,000 

1,500,000 
1,500,000 
1,000,000 

1,500,000 
1,900,000 
1,850,000 


' P19.4()0,900 
■1,000,000 


PI, 009. 50,5. 44 

137,404,87 
282, 238. 18 

5:625:26 
5,926.12 

2.708.18 


P120,000 
1,614,000 

1,449,900 
2,236,500 
4,970,500 

140,001) 

172:500 
370, .500 


PI, 744, 1100 
3,396,000 

2. 876, 000 

14,260,000 

244,000 
80,000 

24:000 


P2, 033, 595. 44 
5.112,318.79 
10, ,572, OM. 28 

9,922,738.18 
19,315,406.11 

386,321.06 
309, 625. 26 
202,920.12 

385.208.18 
205,850.52 
374, 284. 77 


P66,404.66 
2.887,081.21 
3,427.3.15.72 
6,637.505.13 
13,677,301-82 
26,084.603.80 

1,113,078.04 
1,100,374,74 

'794:149:48 
1,475,715.23 


To constnict iiulilic-worlts projwu, 

"^"M^SlS'lf "S" ""'' "' ""' 
Tooonstraeilnigatlonsyslenuand 
_0llMir public ImprovemeDt*. 
To protect the financial interests of 

the goyernment. 
To provide funds for the construc- 
tion of public improvements, etc. 
To provide funds with which to 
constltuto the exchange standard 
nmd and the treasury certifleale 

ITo provide funds for the extension 


Financtalintcrests protection 

Irrigation ami olhw permanont public works 


Cobu port works and improvement: 


do ..- 

.:!:!do!!::;-!:!!!!: 

do -- 

...- do -- 

do-— 


do 

do - 

:::::do::.;' -^ 


Second series - 

TWrd series 

noilo port works and improvement: 

Second series".".!! !!!!---!! 

Third series.— - 






( Cebrce""""' °' "" '"" '" 
To provide funds for the construc- 


Total (excluding collateral bonds in the 


139,350.900 


118,060,000 


20,400,000 3,028,434.48 


21,079.000 


35,170,000 


60,183,434.48 


68,706,565,52 




amount ol f 16,567,000 which are shown 
and indicated below by (') under the 
respective entities). 
Provincial governments: 


ReBislorcd 

Registered 

Coupon and regis- 
tered. 


May 31.1822 
. do - 

;:":do:..';;; 


3471 


Sepl, in.l»2,i 

..'"do-":.'".- 
Dec. 7,1928 


Jon 1.192,i 

ifli i:iS 

May 1,1027 
June 1,1020 

July 1, 1033 
May 16, 103D 

May 4,1930 


.May 

May 1 
May 


lose 

19.57' 
1000 


30 
30 

30 
10-30 

30 


1 


857.000 
800,000 
111,000 
190,000 
442,000 
200,000 
343,000 
955,000 
090,000 

330:000 
} 1,.500,000 

5CB,000 


II?' oS 

10«:000 
200:000 

om:ooo 

090,000 

100:000 
220,000 

{ '^m 

500,000 




26,215.09 
20,607.12 

15:380:44 
3,293.44 
.5,531.17 
9.761.63 
8.753.07 

0:3:51:44 

6,631.06 
6.908.10 

14,238.51 


11.5. .500 

114,000 
160,000 
30,000 
56, ,500 
00,500 

23:000 
81,000 

45:000 
211,000 
70,000 

12.5, 500 
6,000 

15,000 


72:000 

50:000 
44,000 
62.000 
164,000 
136,000 
74,000 


3.52,697,27 

258:007:12 
34,498,50 
07,781,04 
140,880.44 
08,703.44 
90,531.17 
254,761.63 
260,263.07 
120,154.88 
42351.44 
74.639.57 

131,131.66 
12,908-10 

29,238.61 


768,302.73 

70: sot 44 
128,218-90 

251:408:83 
600,238.37 
420.746.03 

117:048:.% 
14.5,360-43 

1,146,568.34 
470.701.40 


To construct wntcrworks systems. 


Paneaslnan public improvement • - 

Marinduque public Improvement '_ . 

Laguna pubhc improvement ' 

nocos Norte public improvement < . _ 

Docos Sur public improvement *. 

Tarlac public improvement '- 

Pampanga public improvetnenl '-- - - 

BuUcan public improvement'. 
Camarines Sur public inji»rr.vement ' 
Lfl Union public imiin.vcmint '. 
Occidental Negros: 

Flistseries'-- 


lio,doo 


To construct public works, etc. 

/ buisetheNationaiaovernmentot 
cutstaodine loans contracted for 
permanent improvement. 












Cpbu. Cebu. 


Total -.- ---- 


8,739,000 


8. 027. 000 


112,000 


181, 533. 50 


1,083,000 


004,900 


2,ffl8,533.59 


6,308.460.41 




Municipal governments: , ^ . 
Cebu (city of Cebu) sewer and waterworks, Telm 
MBJayjay sewer «"^'J^{|,^J^^J/,;,^'ff^'','Jj , 
Bangued sewer and waterworks. Ahm 
Cabatuan waterworks system, Hollo ' 
DinelewBt«rworks system, Uoilo* _ 
IloUo (city of Iloilo) waterworks system. Iloilo • 

Jaro waterworks system, lloilo » 

La Pai (city ol Iloilo) waterworks system, iloilo ■ 

Maasin waterworks system. Iloilo < _ _ . 

Pavia waterworks system. Iloilo ' _ 

Pototan waterworks system. Iloilo » . 
Santa Barbara waterworks system, Uoiln ' 
BacarrB waterworks system, Iloeos N'lrti- ' 

Pasuquin waterworks system, llocos y.^n^.- • 
Vigan waterworks system, llocos Sur ' _ . 
Camaligan waterworks system, Camarines Sur • 


ReL'btere'! 

::::;rio::: ::::! ■ : 

Coupoii and regis- 


July 1.U02 
AUB 20. 1916 

May °3l'. 1922" 
,lo . .__ 

;::;:do;: :::;; 


2000 
2S3S 


Dec -loio 


9 




1057 


10^0 
10-30 
10-39 


M??i 


250,000 
00,000 
99,000 
40,000 

20,000 
338,000 
94,000 

24000 
169,300 
IHSOO 

89:000 
10.000 

5: 000 
5,000 
16,000 
37,600 
360,000 


40:000 

20:000 
338.000 

SltOOO 
3,000 

101:800 

37:000 
350,000 




2:538:48 

2:821:45 
11,316.05 

s: 307: 65 

2,426:95 

2:408:13 
2,809,33 
10,323,20 


120,000 

jisoo 

44:000 
10,600 
12,000 


106,000 


240,870.64 
22,483.05 

22:538:48 
2, 530 81 

106:315:05 
29,846.49 
25, .107. 65 

4122:79 
28,223.27 

^'291 46 

3: 008. 13 
0,809.33 
20.323.20 


9,123.36 
17,616.95 
38.579.19 
17,461.52 

13:678:65 
231,684.06 
64,163-51 
54,692.46 

100:883:20 

4:077:21 
00,770.73 

3:708:64 

27:190: 67 
329,076.80 






^■™'. 








::::-' 


51:000 
12,000 
10,000 




:|:; 


Aut- 1 1927 


May 1 


2,600 
10:000 

9:,500 


13: 000 
■ 12,000 


supply system, etc. 


Magarao waterworks system. Camarines Sur » 

Naga waterworks system. Camarines Sur *_ -. 


5,000 
10,000 










™ 


2,000 




July 25,1035 


May 111,1930 












1,1180,000 


1,800,000 


20,»O0 


08,137.73 


344,500 


251,000 


603,637.73 


1,166,362.27 






Coupon 


M«y 31.1922 

May 31.1922 
do 

::::;do;;;-;: 

do 

do 


326.^, 

32U 
32M 
32fi6 


Mar. 11,1022 
Nov. 17. 1927 
Dec. 3.1928 

Deo. 3.1924 
Deo. 3,1925 


May 1,1028 

Apr. 1, 1929 
Dee. 10. 1935 

Apr. 1, 1925 
Hot. 1, 1929 


May 
iS-. 1 

del. 

te 1 

Nov. 
Apr. 


iioos 

!l905 
!l908 


10-30 
10-30 


■4H 

14M 




City of Manila: 


,5, MM, 000 

1,000, IWKI 

} 10,000,000 


.5,500,000 

1,000,000 

/ 1,000,000 
I 500,000 




> 280, 014. 08 
3(1, 783 13 
28,39.5,23 


127,000 


104,000 
00,000 


220,395.23 


2.774.48.5.02 
738.216.87 






do 
(*oiii)on and ri'Ki*- 




other Improvements. 


Si'i'ond issuf . . 


} 8,500.,™ 


_ Manila. 
\ |)rovement. 


Total 


10,600,000 


8,000,000 


8. 500. 000 


351.000,88 


1,254,600 


1,640,000 


3.245,606.88 


4.7IM.493. 12 




Metropolitan Wat«r Dislriot 


0,000,000 
0,000,001) 


0,000,000 

3,000,000 
6«),000 

600,000 




16:127:01 
13.270.22 

9.085:68 


874,960 

472,000 
73,000 

17,000 
6,000 


1,108,000 


2, 181,, 529. 35 

636,965.68 
88,127.01 
39,276.22 

29,430.62 
18,893.92 


2.3IH,014.32 
470. .563. 38 




Metropolitan Water District: 


Reelfllered'.','--"!.".. 
Coupon and regis- 
tered. 








supply systems. 


Fourth L-iSUr 








500,000 














12,000,000 


11, MO, 000 


600,000 


341,054.48 


1,468,0,50 


1,102,000 


3,002,904.48 


8,497.995.52 
























Orand total 


178.400,600 


148,937,000 


29 532 000 1 4 001 007 10 


26,120,060 


30,223,000 


00,354,017.16 


79.682,982.84 























> Payable quarterly. 
272764—40 (F 



' Payable semiannually. 



' Unissued bonds under 



allotment receivable. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



35 



Appendix III. Coconut Oil Excise Tax Fund Charges Excluded — Continued 

EXPENDITURES BY FUNCTIONAL PURPOSES— Continued 



Items 


Fiscal year 1939 


Ratio to 
total ex- 
penditures 


Investments . _.. ._ ... ._ _. 


P12, 618, 137. 34 


Percent 
17.26 






Purchase of Philippine National Bank stocks (private shares), Act 3174 
Advance to National Power Corporation 


15, 100. 00 

63. 537. 34 

12, 539, 500. 00 


.02 
.09 


Purchase of United States bonds .._.._ 


17.15 






Transfers _ . . 


203, 510. 00 


.28 






Government service insurance system 

National Investment Board . ... 


203. 000. 00 
510. 00 


.28 






Total ... 


73,095,491.93 


100. 00 







Appendix IV. Statement of Total Assets, Liabilities, and Surplus, All 

Funds 

Total assets, liabilities, and surplus, all fu7ids. — The total assets, liabilities, and 
surplus of all funds of the Commonwealth government at the end of the fiscal year 
1939 were as follows: 

CURRENT ASSETS, LIABILITIES, AND SURPLUS 



Fund 


Assets 


Liabilities 


Surplus 


General fund — _ 


5P162,816,534.675 

74, 956, 840. 80 
10, 165, 592. 00 


P25,729,617. 11 

22, 826, 533. 45 

9, 592. 00 


P137. 086, 917. 565 


Special fund _ 


52, 130, 307. 35 


Bond fund 


10, 156, 000. 00 






Total 


247, 938, 967. 475 


48, 565, 742. 56 


199, 373, 224. 915 



RESERVE AND OTHER ASSETS, LIABILITIES, AND SURPLUS 



Sinkins fund 


P69,.354,017.16 
49,824,181.18 

162, 078. 886. 00 
29, 439, 903. 29 
33, 584, 914. 185 
1, 306, 278. 84 
41,890,399.27 




r69, 354, 017. 16 


Exchange standard fund 


P297, 012. 70 

'"'"29,"439,'903."29"' 
33, 584, 914. 185 
1, 306, 278. 84 


49, 527, 168. 48 


Treasury certificate fund ...__ .._._. 


162, 078, 886. 00 


Fiduciarv funds 




Depository funds 




Retirement gratuities... 




Contingent assets 


41, 890, 399. 27 








Total 


387, 478, 579. 925 


64, 628, 109. 015 


322, 850, 470. 91 






Total current, reserve, and other assets... 


635, 417, 547. 40 


113, 193, 851. 575 


522, 223, 695. 825 



INVESTED AND FIXED ASSETS, LIABILITIES, AND SURPLUS 



Permanent and long-term investments 


P146, 468, 498. 54 

230, 745. 801. 07 
21, 972. 53 


P36, 067, 000. 00 
113, 975, 433. 37 


PllO, 401, 498. 54 


Real property and equipment and public do- 
main 1 

Determined losses — Agricultural Bank loans 


116, 770, 367. 70 
21, 972. 53 








Total 


377, 236, 272. 14 


150, 042, 433. 37 


227, 193, 838. 77 


Grand total.. -..-.. 


1, 012, 653, 819. 54 


263, 236, 284. 945 


749, 417, 534. 595 







1 Public domain is carried in the accounts at the nominal value of PI only. 



36 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 



Appendix VI. Statement of Currency Circulation in the Philippines for 
THE Period Jan. 1 to June 30, 1939 





January 


February 


March 


Philippine coins: 

Pesos and half-silver pesos -.- . 


P26, 669, 699. 50 
10, 894, 435. 60 
3, 939, 034. 04 


P26, 669, 699. 50 
10, 894, 435. 60 
3, 939, 034. 04 


P28, 669, 699. 50 
10, 894, 435. 60 
3 947 318 55 


Subsidiary silver coins. 


Minor coins 






Total Philippine coins issued . .. 


41, 503, 169. 14 

164, 139, 610. 00 

2, 500, 000. 00 

5, 475, 923. 47 


41,503,169.14 

161, 559, 148. 00 

2, 500, 000. 00 

5, 2S5, 923. 47 


41 511 453 65 


Total Philippine treasury certificates issued 


161 701 017 00 


Total Bank of the Philippine Islands notes issued 

Total Philippine National Bank notes issued.. 


2, 400, 000 00 
5, 185, 923 47 




Total gross circulation 


21.3, 618, 702. 61 


210, 848, 240. 61 


210, 798. 394. 12 




Less the following amounts: 

Coins held in the treasury vaults belonging to the 
exchange standard fund and treasury certificate 
fund, not considered as available for circulation 
under sec. 1625 (f) of Act No. 3058 as amended by 
Act No. 4199 _ 


18, 806, 846. 91 
104, 040. 00 
364, 140. 00 

41,615.00 

156, 060. 00 


18, 842. 220. 44 
104, 010. 00 
364, 140. 00 

41, 615. 00 

156, 060. 00 


18, 828, 250. 01 
104 040 00 


Coins estimated destroyed, unknown. 


Treasury certificates estimated destroj^ed, unknown. 
Bank of the Philippine Islands notes estimated 
i destroyed, unknown _ ... 


364, 140. 00 
41, 615. 00 
156 060 00 


Philippine National Bank notes estimated de- 
stroyed, unknown.. 






Total amounts to be deducted 


19,472,701.91 1 19,508,075.44 


19, 491, 105. 01 




Total net circulation 


194, 146, 000. 70 


191, 340, 165. 17 


191, 304, 289. 11 






April 


May 


June 


Philippine coins: 

Pesos and half-silver pesos 


P26, 669, 699. 50 
10, 894, 435. 60 
3, 947, 318. 55 


P26, 669, 699. 50 
10, 894, 435. 60 
3, 947, 318. 55 


P2G, 669, 699. 50 
10. 894, 435. 60 
3,947,318.55 


Subsidiary silver coins 


Minor coins 




Total Philippine coins issued 


41,511.453.65 

161, 266, 990. 00 

2, 400, 000. 00 

5, 035, 923. 47 


41,511,453.65 

161, 092, 440 00 

2, 400, 000. 00 

4, 865, 923. 47 


41 511 453 65 


Total Philippine treasury certificates issued 


162, 078, 886. 00 
2, 400, 000. 00 
4, 615. 923. 47 


Total Bank of the Philippine Islands notes issued 

Total PhUippine National Bank notes issued 




Total gross circulation 


210, 214, 367. 12 


209, 869, 817. 12 


210, 606, 263. 12 




Less the following amounts: 

Coins held in the treasury vaults belonging to the 
exchange standard fund and treasury certificate 
fund, not considered as available for circulation 
under sec. 1025 (f) of Act No. 3058 as amended by 
Act No 4199 


18, 781, 400. 56 
104, 040. 00 
364, 140. 00 

41, 615. 00 

156, 060. 00 


18, 792, 368. 31 
104, 040. 00 
364, 140. 00 

41, 615. 00 

156, 060. 00 


18, 854, 213. 02 
104, 040. 00 
364, 140. 00 

41,615.00 

156, 060 00 


Coins estimated destroyed, unknown 

Treasury certificates estimated destroyed, unknown. 
Bank of the Philippine Islands notes estimated 
destroyed, unknown... 


Philippine National Bank notes estimated de- 
stroyed, unknown 




Total amounts to be deducted 


19, 447, 255. 56 


19, 458, 223. 31 


19, 520, 058. 02 




Total net circulation 


190, 767, 111. 56 


190,411.593.81 191 nsfi IQ.ii in 









Certified correct. 



A. S. De Leon, 
Acting Treasurer of the Philippines. 



ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 
Appendix VII. Government-Owned Corporations 



37 



The following statement shows the financial condition of the government- 
owned corporations, as of June 30, 1939: 

OUTSTANDING CAPITAL STOCK 



Corporation 


Total 


Held by the 

central 
government 


Held by the 
government- 
owned 
companies 


Held by 
private 
parties 




no, 000, 000. 00 

31, 427, 000. 00 
900, 000. 00 

26, 410, 300. 00 
5, 501, 600. 00 
4, 000, 000. 00 
1, 903, 861. 00 

1, 500, 000. 00 
510, 500. 00 

2, 000, 000. 00 
2, 004, 213. 03 


P9, 874, 600 
31, 427, 000 




pi 25, 400 


Manila R. R. Co 




Manila Hotel Co _ 


F873, 700. 00 


26,300 




26, 410, 300 




Cebu Portland Cement Co 


5, 500, 600. 00 
4, 000, 000. 00 
1, 903, 864. 00 

1, 500, 000 00 
510, 500. 00 

2, 000, 000. 00 
2, 004, 213. 03 


1,000 








Insular Susar Refinina Corporation 


















People's HomeSite Corporation 

Textile Mills -. 

















ACCUMULATED SURPLUS 



June 30, 1939 



Dec. 31, 1938 



Increase (+) or 
decrease (— ) 



PhOippine National Bank 

Manila R. R. Co 

Manila Hotel Co 

National Development Co 

Cebu Portland Cement Co 

National Rice & Corn Corporation 

Insular Sugar Refining Corporation... 
National Food Products Corporation- 
National Warehousing Corporation... 

People's HomeSite Corporation 

Textile Mills 



no, 000, 000. 00 

20, 679, 357. 71 

1, 573, 746. 21 
1 3, 051, 602. 96 

852, 638. 95 

2, 653, 166. 46 
636, 131. 59 

-59, 832. 23 



PIO, 000, 000. 00 
19, 831, 156. 81 
1, 531, 232. 30 
242. 489. 58 
3,112,874.60 
2, 431, 765. 70 
2 277, 022. 69 



+P848, 200. 90 

+42,513.91 

+2,809,113.38 

-2, 200, 235. 65 

+221,400.76 

+359, 108. 90 

-59, 832. 23 



2, 535. 75 
-15,125.37 



+2, 535. 72 
-15,12.5.37 



1 Including adjustment of P23.50. 
3 Adjusted. 



Appendix VIII. — List of the More Important Measures Passed at the 
First Regular Session op the Second National Assembly 

Commonwealth Act No. 413, approved March 7, 1939, appropriates P500,000 
for additional government services, personnel, and facilities for law enforcement. 

Commonwealth Act No. 414, approved March 13, 1939, appropriates P 150,000 
so as to continue the negotiations already started between the United States 
and the Philippines toward the adjustment of economic and trade relations 
between the two countries. 

Commonwealth Act No. 415, approved May 22, 1939, appropriates P2,975,000 
to compensate the provinces, subprovinces, chartered cities, municipalities, 
and municipal districts for the loss in revenue on account of the abolition of the 
cedula tax. 

Commonwealth Act No. 417, approved May 22, 1939, amends articles 302 and 
310, as amended, of the Revised Penal Code by increasing the penalty for 
robbery or theft of mail matter. 

Commonwealth Act No. 418, approved May 22, 1939, appropriates ^250,000 
for hastening the agronomical survey of the Philippines. 

Commonwealth Act No. 421, approved May 31, 1939, amends Commonwealth 
Act No. 108, "An act to punish acts of evasion of the laws on the nationaliza- 
tion of certain rights, franchises, or privileges." 

Commonwealth Act No. 428, approved May 31, 1939, authorizes the city of 
Bacolod to negotiate a loan in the amount of P500,000 for the purpose of pro- 
viding funds to construct a city hall, the necessary sewer facilities and other 
permanent improvements in the said citj^ and authorizes also a National Govern- 
ment bon d issue .secured by said city bonds. 



38 ANNUAL REPORT OF THE PRESIDENT OF THE PHILIPPINES 

Commonwealth Act No. 429, approved May 31, 1939, authorizes the President 
of the Phihppines to negotiate with the President of the United States regarding 
the assignment of Filipinos to United States embassies or consulates in foreign 
countries. 

Commonwealth Act No. 430, approved May 31, 1939, creates the Department of 
National Defense and the Department of Health and Public Welfare. 

Commonwealth Act No. 433, approved May 31, 1939, suspends the granting of 
geological exploration and petroleum drilling leases. 

Commonwealth Act No. 437, approved May 31, 1939, amends the Corporation 
Law by prohibiting the investment of any fund of a corporation in any other 
corporation or in any business other than that for which it was organized, unless 
certain requirements are fulfilled. 

Commonwealth Act No. 441, approved June 3, 1939, creates the National Land 
Settlement Administration with a capital stock of P20,000,000 to be subscribed 
by the Commonwealth government. 

Commonwealth Act No. 442, approved June 3, 1939, directs the transfer of the 
University of the Philippines to a site outside the city of Manila, appropriating 
F17, 500,000 for the purpose. 

Commonwealth Act No. 446, approved June 8, 1939; budgetary appropriations of 
the Commonwealth government for the fiscal year ending June 30, 1940, 
amounting to F74,441,357. 

Commonwealth Act No. 448, approved June 8, 1939, prohibits the construction 
of obstructions hazardous to air navigation, the construction of private landing 
fields abutting other landing fields, and prescribing penalties for violations of 
the same. 

Commonwealth Act No. 449, approved June 8, 1939, authorizes the President of 
the Philippines to conduct negotiations for the acquisition, management, and 
operation by the government of the Manila Electric Co., the Manila Gas Cor- 
poration, the Philippine Long Distance Telephone Co., and any other public 
utility. 

Commonwealth Act No. 450, approved June 8, 1939, appropriates P500,000 for 
the promotion of the livestock industry through the establishment and opera- 
tion of breeding stations and stock farms. 

Commonwealth Act No. 451, approved June 8, 1939, creates the Legislative 
Service Office of the National Assembly, appropriating P100,000 for the 
purpose. 

Commonwealth Act No. 452, approved June 8, 1939; the Pasture Land Act. 

Commonwealth Act No. 453, approved June 8, 1939, authorizes the abolition of 
the National Information Board and the reorganization of the Departments of 
Interior, Agriculture and Commerce, and Labor. 

Commonwealth Act No. 458, approved June 9, 1939, providing for the establish- 
ment of the Reserve Bank of the Philippines, with a capital stock of P5, 000, 000. 

Commonwealth Act No. 459, approved June 9, 1939, providing for the creation 
of the Agricultural and Industrial Bank, with a capital stock of P150,000,000. 

Commonwealth Act No. 460, approved June 9, 1939, raises the amount that may 
be loaned by the Philippine National Bank for agricultural purposes from 60 to 
75 percent of its capital and surplus. 

Commonwealth Act No. 461, approved June 9, 1939, regulates the relations 
between landowner and tenant and provides for compulsory arbitration of any 
controversy arising between them. 

Commonwealth Act No. 464, approved June 14, 1939, remits under certain condi- 
tions unpaid taxes and penalties on forfeited real property. 

Commonwealth Act No. 466, approved June 15, 1939, revising, amending, and 
codifying the internal-revenue laws of the Philippines. 

Commonwealth Act No. 467, approved June 15, 1939, appropriates P3, 490, 045 as 
additional funds for the operation of the Commonwealth government during 
the fiscal year 1940. 

Commonwealth Act No. 468, approved June 15, 1939, creates an advance fund 
of P2, 000, 000 to finance a general revision of real property assessments in the 
provinces. 

Commonwealth Act No. 469, approved June 15, 1939, appropriates P8, 100,000 
for public works. 



ANNUAL PuEPOKT OF THE PEESIDENT OF THE PHILIPPINES 39 

Commonwealth Act No. 471, approved June 16, 1939, amends Act 4003, "An 
act to amend and compile the law relating to fish and other aquatic resources 
of the Philippine Islands, and for other purposes." 

Commonwealth Act No. 372, approved June 16, 1939, revises the general au- 
thority of municipal councils and municipal district councils to levy taxes, 
subject to certain limitations. 

Commonwealth Act No. 490, approved June 18, 1939, grants regularly appointed 
municipal officers and employees vacation and sick leave. 

Commonwealth Act No. 491, approved June 18, 1939, provides stricter regula- 
tions for the protection of game and fish. 



Appendix IX. List of the More Important Executive Orders Issued by 

THE President op the Philippines 

Executive Order No. 178, dated December 17, 1938, prescribes the procedure, 
including modes of proof, in cases before courts martial, courts of inquiry, 
military commissions, and other military tribunals of the Army of the Philip- 
pines. 

Executive Order No. 179, dated December 31, 1938, relieves Maj. Gen. Paulino 
Santos as Chief of Staff of the Army of the Philippines, and designates Maj. 
Gen. Basilio J. Valdes, Deputy Chief of Stafi", to succeed him. 

Executive Order No. 182, dated January 30, 1939, designates the Secretary of the 
Interior to exercise supervision over the Philippine Constabulary. 

Executive Order No. 186, dated February 11, 1939, promulgates rules and regu- 
lations governing the loss of firearms held under the provisions of section 881 
of the Revised Administrative Code. 

Executive Order No. 188, dated February 23, 1939, creates the National Relief 
Administration. 

Executive Order No. 189, dated February 28, 1939, creates the Philippine Com- 
mittee on Geographical Names. 

Executive Order No. 190, dated February 28, 1939, allots the portions of the 
budgetary appropriations authorized by Commonwealth Act No. 300, which 
may be used for the expenditures of the executive departments of the National 
Government during the period from January to June 30, 1939. 

Executive Order No. 191, dated March 2, 1939, creates the Rural Progress Ad- 
ministration which shall take charge of promoting small land ownership and 
improving the living conditions and general welfare of the rural population. 

Executive Order No. 193,. dated March 13, 1939, designates the government 
boards of examiners as advisory committees on technical matters to the Office 
of Private Education. 

Executive Order No. 194, dated March 13, 1939, revises Executive Order No. 135, 
dated December 31, 1937, establishing a classification of roads into national, 
provincial, and municipal roads. 

Executive Order No. 195, dated March 13, 1939, revises Executive Order No. 72, 
dated December 3, 1936, establishing a classification of ports. 

Executive Order No. 198, dated April 4, 1939, makes allotments of the appropri- 
ations for the Phillippine Army as authorized by Commonwealth Act No. 300. 

Executive Order No. 203, dated May 3, 1939, designates Phihppine Army extra 
cantonment zones in all mobilization centers and empowers the Director of 
Health to promulgate all needful health rules and regulations therein. 

Executive Order No. 205, dated May 31, 1939, prescribes the policy to be observed 
in the promotion of retired officers of the Philippine Army v/ho have been 
called to active duty. 

Executive Order No. 206_, dated May 31, 1939, authorizes the conversion of the 
Rural Progress Administration, which was created by Executive Order No. 
191, dated March 2, 1939, into a corporation. 

Executive Order No. 207, dated June 15, 1939, requires the establishment of 
Reserve Officers' Training Corps units in aU colleges and universities as a 
requisite to recognition by the government. 



40 



AiSriNTJAL. REPORT OF THE PRESTDEXT OF THE PHILIPPINES 



Appendix X. Total Imports and Exports of the Philippines, by Months, 
FROM January to June 1938-39 



IMPORTS 



Months 



January., -- 
February. . 

March 

April 

May 

June 

Total 



1939 



P15,254,740 
13, 9?0, 557 
17, 009, 456 
15, 106, 189 
14. 247, 975 
24, 347, 470 



99, 946, 387 



1938 



P21,511,376 
24, 277, 106 
37, 325, 067 
26, 824, 756 
24. 281, 554 
19, 574, 512 



153, 794, 371 



Increase (+) or 
decrease (— ) 



-P6, 256, 636 

-10,296,549 
-20,315,611 
-11,718. ."567 
-10,033,579 
+4, 772, 958 



-53, 847, 984 



Percent 



-29.09 
-42. 41 
-54.43 
-43. 69 
-41.32 
+24. 38 



-35. 01 



EXPORTS 



January 

February.. 

March 

April 

May 

June 

Total 



P18. 847, 864 
21,200,312 
24,051,485 
20, 885, 416 
26, 095. 838 
24, 949, 537 



136, 030, 452 



T20, 969, 187 
21, 505, 069 
31, 209, 013 
20. 738, 362 
18, 919, 150 
19,284,611 



132, 625, 392 



-K, 121,323 

-304, 757 

-7, 157, 528 

+147, 054 

+7, 176, 688 

+5, 664, 926 



+3, 405, 060 



-10.12 
-1.42 

-22. 93 
+ .71 

+37. 93 

+28. 86 



+2.57 



Overseas Trade During the First 6 Months of 1939, as Compared with the 

First 6 Months of 1938 

IMPORTS 



Articles 



1938 



Increase (+) 
or de- 
crease (— ) 



Percent 



Iron and steel and manufactures of 

Cotton soods 

Mineral oils 

Automobiles, parts of, and tires for 

Tobacco products. 

Meat and dairy products 

Paper and manufactm"es of 

Wheat flour. _ 

Chemicals, drugs, dyes, and medicines 

Electrical machinery, apparatus, and appli- 
ances... 

All other imports 

Total 



P19, 344, 833 
17, 047, 055 
6, 037, 320 
3,461,585 
3, 022, 236 
4, .565, 710 
3, 497, 058 
4, 638, 495 
2, 896, 632 

2, .398, 912 
33, 036, 551 



P27, 676, 716 
23, 532, 788 
9, 052, 217 
10, 903, 634 
8, 904, 049 
6, 332, 245 
6, 426, 365 
5, 314, 404 
5, 229, 140 

4, 600, 016 
45, 822, 797 



-P8, 331, 883 
-6, 485, 733 
-3,014,897 
-7, 442, 049 
-5,881,813 
-1,766,535 
-2, 929, 307 
-675, 909 
-2, 332, 508 

-2, 201, 104 
-12,786,246 



99, 946, 387 



153, 794, 371 



-53,847,984 



-30. 10 
-27.66 
-33.31 
-68. 25 
-66. 06 
-27.90 
-45. 58 
-12.72 
-44. 61 

-47. 85 
-27.90 



-35.01 



EXPORTS 





P68, 932, 750 

12,428,051 

9,686,012 

10, 503, 338 

4, 932, 080 

766, 371 

3,443,991 

1, 523, 342 

1, 946, 105 

1,528,119 

20, 340, 293 


P70, 175, 294 
11,293,152 
10,402,811 
10,211,665 
4, 202, 449 
394, 389 
3, 199, 252 

1, 650, 236 

2, 538, 919 
1, 279, 509 

17, 277, 716 


-?1, 242, 544 
+1, 134, 899 
-716, 799 
+291, 673 
+729, 631 
+371, 982 
+244, 739 
-126, 894 
-592,814 
+248, 610 
+3, 062, 577 


-1.77 




+10. 05 




-6.89 




+2.86 




+ 17.36 




+94. 32 




+7.65 


Timber and lumber . . 


-7.69 




-23.35 


Cordase 


+19. 43 




+17. 73 






Total 


136, 030, 452 


132, 625, 392 


+3,405,060 


+2. 57 







ANNUAL REPOKT OF THE PRESIDENT OF THE PHILIPPINES 



41 



Appendix XI. Arrivals and Departures of Persons in the Philippines from 

Jan. 1 to June 30, 1939 



Nationality 



Total 
arrivals 



Total de- 
partures 



Immi- 
grants 



Emi- 
grants 



Total (1938). ___ 

Total (1939) (January to June) 

Americans 

Filipinos 

Chinese 

Japanese 

Other nationalities 



33, 369 
10, 482 



19, 297 
12, 076 



9,551 
1,756 



2,839 
4,058 



2.297 
1.991 
3,232 
1,407 
1, 555 



2, 538 
1,767 
4,266 
1,948 
1,557 



398 
779 
579 



2,304 

1,540 

214 



o